Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: Cost of goods sold Inventories: Beginning of year End of year 20Y7 $3,962,805 Inventory turnover 810,300 876,000 a. Determine the inventory turnover for 20Y7 and 20Y6. Round your answers to one decimal place. 20Y6 $4,277,070 20Y7 773,800. 810,300 2016 b. Determine the days' sales in inventory for 20Y7 and 20Y6. Use 365 days a year. Round your answers to one decimal place. 20Y7 20Y6 Number of days' sales in inventory c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable? days days
Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: Cost of goods sold Inventories: Beginning of year End of year 20Y7 $3,962,805 Inventory turnover 810,300 876,000 a. Determine the inventory turnover for 20Y7 and 20Y6. Round your answers to one decimal place. 20Y6 $4,277,070 20Y7 773,800. 810,300 2016 b. Determine the days' sales in inventory for 20Y7 and 20Y6. Use 365 days a year. Round your answers to one decimal place. 20Y7 20Y6 Number of days' sales in inventory c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable? days days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Inventory turnover and number of days' sales in inventory
Financial statement data for years ending December 31 for Tango Company follow:
Cost of goods sold
Inventories:
20Y7
$3,962,805
Inventory turnover
Beginning of year
810,300
End of year
876,000
a. Determine the inventory turnover for 20Y7 and 20Y6. Round your answers to one decimal place.
20Y6
$4,277,070
20Y7
773,800.
810,300
20Y6
b. Determine the days' sales in inventory for 20Y7 and 20Y6. Use 365 days a year. Round your answers to one decimal place.
20Y7
20Y6
Number of days' sales in inventory
c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?
days
days
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