The following data were taken from the financial records of Mydorf Company. 2025 2024 Net Sales $6,420,000 $6,240,000 Beginning inventory 960,000 840,000 Purchases 4,840,000 4,661,000 Ending inventory 1,020,000 960,000 (b2) What conclusions concerning the management of the inventory can be drawn from the inventory turnover ratio and days in inventory data?

The following data were taken from the financial records of Mydorf Company. 2025 2024 Net Sales $6,420,000 $6,240,000 Beginning inventory 960,000 840,000 Purchases 4,840,000 4,661,000 Ending inventory 1,020,000 960,000 (b2) What conclusions concerning the management of the inventory can be drawn from the inventory turnover ratio and days in inventory data?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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