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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Accounting for Notes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education