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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 1Preceding Year
fill in the blank 22. 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 daysPreceding Year
fill in the blank 4 days
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