The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $17,900,000 $18,100,000 Beginning inventories 760,000 700,000 Cost of merchandise sold 8,964,000 9,782,000 Ending inventories 900,000 760,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Prior Year Inventory turnover Number of days' sales in inventory days days
The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $17,900,000 $18,100,000 Beginning inventories 760,000 700,000 Cost of merchandise sold 8,964,000 9,782,000 Ending inventories 900,000 760,000 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. Current Year Prior Year Inventory turnover Number of days' sales in inventory days days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following data were extracted from the income statement of Shriver Inc.:
| Current Year | Prior Year | |||
| Sales | $17,900,000 | $18,100,000 | ||
| Beginning inventories | 760,000 | 700,000 | ||
| Cost of merchandise sold | 8,964,000 | 9,782,000 | ||
| Ending inventories | 900,000 | 760,000 |
a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.
| Current Year | Prior Year | |
| Inventory turnover | ||
| Number of days' sales in inventory | days | days |
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