Inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December 31 for Holland Company are shown below. Cost of merchandise sold Inventories: Beginning of year End of year 20Y4 20Y3 20Y4 $299,300 430,700 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y3 20Y4 $1,314,000 Days' Sales in Inventory days days Favorable Unfavorable 20Y3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place. $838,332 $208,780 299,300 c. Does the change in inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
Inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December 31 for Holland Company are shown below. Cost of merchandise sold Inventories: Beginning of year End of year 20Y4 20Y3 20Y4 $299,300 430,700 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y3 20Y4 $1,314,000 Days' Sales in Inventory days days Favorable Unfavorable 20Y3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place. $838,332 $208,780 299,300 c. Does the change in inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Inventory Turnover and Days' Sales in Inventory
The following financial statement data for years ending December 31 for Holland Company are shown below.
Cost of merchandise sold
Inventories:
Beginning of year
End of year
20Y4
20Y3
$299,300
430,700
a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.
20Y4
Inventory Turnover
20Y3
20Y4
$1,314,000
Days' Sales in Inventory
days
days
Favorable
Unfavorable
20Y3
b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and
final answers to one decimal place.
$838,332
$208,780
299,300
c. Does the change in inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an
unfavorable trend?
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