Inventory turnover and 'number of days' sales in inventoryFinancial statement data for years ending December 31 for Tango Company follow:20Y720Υ6Cost of goods sold$3,739,790 $3,852,940Inventories:Beginning of year759,200722,700End of year832,200759,200Requireda. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place.20Υ720Y6Inventory turnoverb. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place.20Υ720Y6Number of days' sales in inventorydaysdaysc. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?

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Description: Inventory turnover and 'number of days' sales in inventoryFinancial statement data for years ending December 31 for Tango Company follow:20Y720Υ6Cost of goods sold$3,739,790 $3,852,940Inventories:Beginning of year759,200722,700End of year832,200759,

Formula: Inventory Turnover = Cost of goods sold/ Average Inventory No of days sales in inventory =…

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Inventory turnover and 'number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Y7 20Υ6 Cost of goods sold $3,739,790 $3,852,940 Inventories: Beginning of year 759,200 722,700 End of year 832,200 759,200 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Υ7 20Υ6 Inventory turnover b. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and rour 20Y7 20Υ6 Number of days' sales in inventory days days c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6

Inventory turnover and 'number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Y7 20Υ6 Cost of goods sold $3,739,790 $3,852,940 Inventories: Beginning of year 759,200 722,700 End of year 832,200 759,200 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Υ7 20Υ6 Inventory turnover b. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and rour 20Y7 20Υ6 Number of days' sales in inventory days days c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6

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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