Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $788,400 $827,800 Beginning inventories 50,784 39,314 Cost of merchandise sold 394,200 459,900 Ending inventories 45,984 50,784 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 Prior 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 b. The inventory turnover has , while the number of days' sales in inventory has . The sales volume has faster than the inventory, resulting in a inventory position.
Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $788,400 $827,800 Beginning inventories 50,784 39,314 Cost of merchandise sold 394,200 459,900 Ending inventories 45,984 50,784 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 Prior 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 b. The inventory turnover has , while the number of days' sales in inventory has . The sales volume has faster than the inventory, resulting in a inventory position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Inventory Analysis
The following data were extracted from the income statement of Shriver Inc.:
| Current Year | Prior Year | |||
| Sales | $788,400 | $827,800 | ||
| Beginning inventories | 50,784 | 39,314 | ||
| Cost of merchandise sold | 394,200 | 459,900 | ||
| Ending inventories | 45,984 | 50,784 |
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 | Prior 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 |
b. The inventory turnover has
, while the number of days' sales in inventory has
. The sales volume has
faster than the inventory, resulting in a
inventory position.
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