Inventory Turnover and Days’ Sales in Inventory The Southern Company installed a new inventory management system at the beginning of 2015. Shown below are data from the company’s accounting records as reported out by the new system: Sales Revenue $8, 000, 000 $11, 000, 000 Cost of Goods Sold 4, 000, 000 4, 800, 000 Beginning Inventory 510, 000 530, 000 Ending Inventory 530, 000 600, 000 Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for 2015 and 2016.
Exercises 6-11A
Inventory Turnover and Days’ Sales in Inventory
The Southern Company installed a new inventory management system at the beginning of 2015. Shown below are data from the company’s accounting records as reported out by the new system:
Sales Revenue $8, 000, 000 $11, 000, 000
Cost of Goods Sold 4, 000, 000 4, 800, 000
Beginning Inventory 510, 000 530, 000
Ending Inventory 530, 000 600, 000
Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for 2015 and 2016.
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