Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 1 Year 2 Sales revenue $27,000,000 533,000,000 Cost of goods sold 15,000,000 17.700,000 Beginning inventory 1,200,000 1.260,000 Ending inventory 1,260,000 1,400,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations. Year 1 Year 2 (a) Inventory turnover (b) Days' sales in inventory

Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 1 Year 2 Sales revenue $27,000,000 533,000,000 Cost of goods sold 15,000,000 17.700,000 Beginning inventory 1,200,000 1.260,000 Ending inventory 1,260,000 1,400,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations. Year 1 Year 2 (a) Inventory turnover (b) Days' sales in inventory

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Description: Inventory Turnover and Days' Sales in InventoryThe Northern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system:Year 1Year 2Sales re

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 1 Year 2 Sales revenue $13,500,000 $16,500,000 Cost of goods sold 7,500,000 8,850,000 Beginning inventory 1,200,000 1,260,000 Ending inventory 1,260,000 1,400,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations. Year 1 Year 2 (a) Inventory turnover (b) Days' sales in inventory
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