Mulder Corporation's comparative balance sheets for year end at December 31, 2017 are presented below: 2017 2016 Cash $10,300 $3,900 Accounts receivable 6,200 14,400 Inventory 11,000 8,000 Land 32,000 28,000 Buildings 74,000 74,000 Accumulated depreciation - buildings (15,000) (12,000) Total $118,500 $116,300 Accounts payable $17,370 31,100 Common stock ($5 par) 60,000 60,000 Retained earnings 41,130 25,200 Total $118,500 $116,300 Mulder's 2017 income statement included net sales of $140,000, cost of goods sold of $80,000 and net income of $20,000. Compute the inventory turnover and days in inventory ratio for 2017.
Mulder Corporation's comparative balance sheets for year end at December 31, 2017 are presented below: 2017 2016 Cash $10,300 $3,900 Accounts receivable 6,200 14,400 Inventory 11,000 8,000 Land 32,000 28,000 Buildings 74,000 74,000 Accumulated depreciation - buildings (15,000) (12,000) Total $118,500 $116,300 Accounts payable $17,370 31,100 Common stock ($5 par) 60,000 60,000 Retained earnings 41,130 25,200 Total $118,500 $116,300 Mulder's 2017 income statement included net sales of $140,000, cost of goods sold of $80,000 and net income of $20,000. Compute the inventory turnover and days in inventory ratio for 2017.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mulder Corporation's comparative balance sheets for year end at December 31, 2017 are presented below:
2017 2016
Cash $10,300 $3,900
Inventory 11,000 8,000
Land 32,000 28,000
Buildings 74,000 74,000
Total $118,500 $116,300
Accounts payable $17,370 31,100
Common stock ($5 par) 60,000 60,000
Total $118,500 $116,300
Mulder's 2017 income statement included net sales of $140,000, cost of goods sold of $80,000 and net income of $20,000.
Compute the inventory turnover and days in inventory ratio for 2017.
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