Inventory Analysis The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $1,168,000 $1,222,000 Beginning inventories 84,800 75,984 Cost of goods sold 584,000 678,900 Ending inventories 76,800 84,800 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year.
Inventory Analysis The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $1,168,000 $1,222,000 Beginning inventories 84,800 75,984 Cost of goods sold 584,000 678,900 Ending inventories 76,800 84,800 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Inventory Analysis
The following data were extracted from the income statement of Keever Inc.:
| Current Year | Previous Year | |||
| Sales | $1,168,000 | $1,222,000 | ||
| Beginning inventories | 84,800 | 75,984 | ||
| Cost of goods sold | 584,000 | 678,900 | ||
| Ending inventories | 76,800 | 84,800 |
a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year.
| Current Year | Previous Year | |||
| 1. Inventory turnover | fill in the blank 1 | fill in the blank 2 | ||
| 2. Number of days' sales in inventory | fill in the blank 3 | days | fill in the blank 4 | days |
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