Inventory Turnover and Days’ Sales in Inventory Shown below are data from the Northern Company’s accounting records: Year 1 Year 2 Sales Revenue $8,000,000 $11,000,000 Cost of Goods Sold 4,000,000 4,800,000 Beginning Inventory 510,000 540,000 Ending Inventory 550,000 600,000 Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for both years. Round your answer to two decimal points. Year 1 Year 2 Inventory turnover Answer Answer Days' sales in inventory Answer Answer
Inventory Turnover and Days’ Sales in Inventory Shown below are data from the Northern Company’s accounting records: Year 1 Year 2 Sales Revenue $8,000,000 $11,000,000 Cost of Goods Sold 4,000,000 4,800,000 Beginning Inventory 510,000 540,000 Ending Inventory 550,000 600,000 Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for both years. Round your answer to two decimal points. Year 1 Year 2 Inventory turnover Answer Answer Days' sales in inventory Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Inventory Turnover and Days’ Sales in Inventory
Shown below are data from the Northern Company’s accounting records:
| Year 1 | Year 2 | |
|---|---|---|
| Sales Revenue | $8,000,000 | $11,000,000 |
| Cost of Goods Sold | 4,000,000 | 4,800,000 |
| Beginning Inventory | 510,000 | 540,000 |
| Ending Inventory | 550,000 | 600,000 |
Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for both years.
Round your answer to two decimal points.
| Year 1 | Year 2 | |
|---|---|---|
| Inventory turnover | Answer
|
Answer
|
| Days' sales in inventory | Answer
|
Answer
|
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