Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,877,000. Dogwood had the following balances: Accounts receivable Inventories Required: January 1 December 31 $725,000 $775,000 450,000 425,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,877,000. Dogwood
had the following balances:
Accounts receivable
Inventories
January 1
$725,000
450,000
December 31
$775,000
425,000
Required:
Note: Round answers to one decimal place. Assume 365 days per year.
1. Calculate the average inventory.
$
2. Calculate the inventory turnover ratio.
times
Transcribed Image Text:Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,877,000. Dogwood had the following balances: Accounts receivable Inventories January 1 $725,000 450,000 December 31 $775,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. $ 2. Calculate the inventory turnover ratio. times
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