The following data were taken from the financial records of Mydorf Company. Net Sales Beginning inventory Purchases Ending inventory 2022 $6,420,000 (1) Inventory turnover (2) Days in inventory (b) 940,000 4,340,000 1,020,000 2022 2021 76 days $6,240,000 860,000 4,661,000 940,000 2021 4.8 times 5.0 times 73 days What conclusions concerning the management of the inventory can be drawn from these data?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following data were taken from the financial records of Mydorf Company.
Net Sales
Beginning inventory
Purchases
Ending inventory
(1) Inventory turnover
(2) Days in inventory
(b)
2022
$6,420,000
940,000
4,340,000
1,020,000
2022
4.8 times
76 days
BI UT₂ T² Ix
!!!
2021
!!!
$6,240,000
860,000
4,661,000
940,000
2021
What conclusions concerning the management of the inventory can be drawn from these data?
5.0 times
73 days
3
99
á
T
Transcribed Image Text:The following data were taken from the financial records of Mydorf Company. Net Sales Beginning inventory Purchases Ending inventory (1) Inventory turnover (2) Days in inventory (b) 2022 $6,420,000 940,000 4,340,000 1,020,000 2022 4.8 times 76 days BI UT₂ T² Ix !!! 2021 !!! $6,240,000 860,000 4,661,000 940,000 2021 What conclusions concerning the management of the inventory can be drawn from these data? 5.0 times 73 days 3 99 á T
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