The following data were taken from the financial records of Sunland Company. 2022 2021 Net Sales $6,370,000 $6,180,000 Beginning inventory 965,000 825,000 Purchases 4,347,500 4,615,000 Ending inventory 1,060,000 965,000 (a1) Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) 2022 2021 Inventory turnover times times
The following data were taken from the financial records of Sunland Company. 2022 2021 Net Sales $6,370,000 $6,180,000 Beginning inventory 965,000 825,000 Purchases 4,347,500 4,615,000 Ending inventory 1,060,000 965,000 (a1) Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) 2022 2021 Inventory turnover times times
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer question. NOTE this is one question with multiple parts answer each carefully
![### Inventory Days Calculation
**Objective**: Compute the number of days in inventory for each year using a 365-day year for calculation. Round answers to one decimal place (e.g., 1.6).
#### Instructions:
- **Years to Calculate**:
- **2022**
- **2021**
- **Formula**:
- Days in Inventory = \(\frac{\text{Number of Days in Year}}{\text{Inventory Turnover Ratio}}\)
- Use 365 days for the calculation.
#### Input Fields:
- **2022**:
- Days in Inventory: [Input Box] days
- **2021**:
- Days in Inventory: [Input Box] days
Enter the calculated days in the designated input boxes for each respective year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb4c002f-184e-4d4b-8f58-b85aac470a18%2Ffe364117-8a51-4798-953c-d58e4bc44969%2Frp5xy0t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Inventory Days Calculation
**Objective**: Compute the number of days in inventory for each year using a 365-day year for calculation. Round answers to one decimal place (e.g., 1.6).
#### Instructions:
- **Years to Calculate**:
- **2022**
- **2021**
- **Formula**:
- Days in Inventory = \(\frac{\text{Number of Days in Year}}{\text{Inventory Turnover Ratio}}\)
- Use 365 days for the calculation.
#### Input Fields:
- **2022**:
- Days in Inventory: [Input Box] days
- **2021**:
- Days in Inventory: [Input Box] days
Enter the calculated days in the designated input boxes for each respective year.
![**Financial Analysis: Inventory Turnover Calculation**
The following data were taken from the financial records of Sunland Company:
| Year | Net Sales | Beginning Inventory | Purchases | Ending Inventory |
|------|-----------|---------------------|-----------|-----------------|
| 2022 | $6,370,000 | $965,000 | $4,347,500 | $1,060,000 |
| 2021 | $6,180,000 | $825,000 | $4,615,000 | $965,000 |
(a1) Compute the inventory turnover for each year. (Round answers to 1 decimal place, e.g., 1.6.)
| Year | Inventory Turnover |
|------|--------------------|
| 2022 | ___ times |
| 2021 | ___ times |
**Instructions:**
1. **Inventory Turnover Formula:**
\[
\text{Inventory Turnover} = \frac{\text{Cost of Goods Sold (COGS)}}{\text{Average Inventory}}
\]
- COGS can be calculated as: \(\text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory}\).
- Average Inventory is the mean of the beginning and ending inventory for the year.
2. Calculate for each year and fill in the blanks with rounded results.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbb4c002f-184e-4d4b-8f58-b85aac470a18%2Ffe364117-8a51-4798-953c-d58e4bc44969%2Fn7ipts8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Financial Analysis: Inventory Turnover Calculation**
The following data were taken from the financial records of Sunland Company:
| Year | Net Sales | Beginning Inventory | Purchases | Ending Inventory |
|------|-----------|---------------------|-----------|-----------------|
| 2022 | $6,370,000 | $965,000 | $4,347,500 | $1,060,000 |
| 2021 | $6,180,000 | $825,000 | $4,615,000 | $965,000 |
(a1) Compute the inventory turnover for each year. (Round answers to 1 decimal place, e.g., 1.6.)
| Year | Inventory Turnover |
|------|--------------------|
| 2022 | ___ times |
| 2021 | ___ times |
**Instructions:**
1. **Inventory Turnover Formula:**
\[
\text{Inventory Turnover} = \frac{\text{Cost of Goods Sold (COGS)}}{\text{Average Inventory}}
\]
- COGS can be calculated as: \(\text{Beginning Inventory} + \text{Purchases} - \text{Ending Inventory}\).
- Average Inventory is the mean of the beginning and ending inventory for the year.
2. Calculate for each year and fill in the blanks with rounded results.
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