Inventory AnalysisThe following data were extracted from the income statement of Shriver Inc.:Prior YearSalesBeginning inventoriesCost of merchandise soldEnding inventoriesCurrent Year$919,800$959,20059,37450,012459,90053,774532,90059,374a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollarand the final answers to one decimal place. Assume 365 days a year.Current YearPrior Year1. Inventory turnover2. Number of days' sales in inventory8.1344.9 ✓ days9.74 X37.4 X daysb. The inventory turnover has decreased ✔, while the number of days' sales in inventory has increased ✓. The sales volume has declinedfaster than the inventory, resulting in a deterioratinginventory position.

Inventory turnover is the rate at which the inventory is either sold, held or replaced. In other…

The following data were extracted from the income statement of Shriver Inc.: Current Year Sales Beginning inventories Cost of merchandise sold Ending inventories $919,800 59,374 459,900 53,774 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest doll and the final answers to one decimal place. Assume 365 days a year. Current Year Prior Year 8.13 X $959,200 50,012 532,900 59,374 Prior Year 1. Inventory turnover 2. Number of days' sales in inventory 44.9 days 37.4 X days b. The inventory turnover has decreased ✔, while the number of days' sales in inventory has increased faster than the inventory, resulting in a deteriorating ✔ inventory position. 9.74 X ✓. The sales volume has declined

The following data were extracted from the income statement of Shriver Inc.: Current Year Sales Beginning inventories Cost of merchandise sold Ending inventories $919,800 59,374 459,900 53,774 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest doll and the final answers to one decimal place. Assume 365 days a year. Current Year Prior Year 8.13 X $959,200 50,012 532,900 59,374 Prior Year 1. Inventory turnover 2. Number of days' sales in inventory 44.9 days 37.4 X days b. The inventory turnover has decreased ✔, while the number of days' sales in inventory has increased faster than the inventory, resulting in a deteriorating ✔ inventory position. 9.74 X ✓. The sales volume has declined

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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