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The following data are taken from the financial statements:   Current Year   Preceding Year Sales $3,600,000   $4,000,000 Cost of goods sold 2,000,000   2,700,000 Average inventory 372,000   352,000 Inventory, end of year 397,000   347,000   Determine for each year: (1) Inventory turnover (2) Number of days' sales in inventory. 1. Inventory turnover: (If required, round your answers to one decimal place.) Current Year fill in the blank 1 Preceding Year fill in the blank 2 2. Number of days' sales in inventory: Assume a 365-day year. (Round intermediate calculation to the nearest whole number and your answers to two decimal places.) Current Year fill in the blank 3 days Preceding Year fill in the blank 4 days

The following data are taken from the financial statements:   Current Year   Preceding Year Sales $3,600,000   $4,000,000 Cost of goods sold 2,000,000   2,700,000 Average inventory 372,000   352,000 Inventory, end of year 397,000   347,000   Determine for each year: (1) Inventory turnover (2) Number of days' sales in inventory. 1. Inventory turnover: (If required, round your answers to one decimal place.) Current Year fill in the blank 1 Preceding Year fill in the blank 2 2. Number of days' sales in inventory: Assume a 365-day year. (Round intermediate calculation to the nearest whole number and your answers to two decimal places.) Current Year fill in the blank 3 days Preceding Year fill in the blank 4 days

FINANCIAL ACCOUNTING
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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  1. The following data are taken from the financial statements:

      Current Year   Preceding Year
    Sales $3,600,000   $4,000,000
    Cost of goods sold 2,000,000   2,700,000
    Average inventory 372,000   352,000
    Inventory, end of year 397,000   347,000

     

    Determine for each year:
    (1) Inventory turnover
    (2) Number of days' sales in inventory.

    1. Inventory turnover: (If required, round your answers to one decimal place.)

    Current Year
    fill in the blank 1

    Preceding Year
    fill in the blank 2

    2. Number of days' sales in inventory: Assume a 365-day year. (Round intermediate calculation to the nearest whole number and your answers to two decimal places.)

    Current Year
    fill in the blank 3 days

    Preceding Year
    fill in the blank 4 days

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