The following is information for Palmer Company. Cost of goods sold Ending inventory Year 2 $ 613,825 $ 396,650 Year 3 99,400 89,750 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory? Inventory turnover Days' sales in inventory Year 1 $361,300 94,500 Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2. Numerator /Denominator Inventory turnover Days' sales in inventory = 0 0 Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Numerator 7 Denominator Ratio Ratio 0 0 Did Palmer improve its (a) inventory turnover from Year 2 to Year 3 and (b) days' sales in inventory from Year 2 to Year 3? (a) Did Palmer improve its inventory turnover from Year 2 to Year 3? (b) Did Palmer improve its days' sales in inventory from Year 2 to Year 3?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 5-19 (Algo) Inventory turnover and days' sales in inventory LO A3
The following is information for Palmer Company.
Year 3
$ 613,825
99,400
Cost of goods sold
Ending inventory
Year 2
$ 396,650
89,750
Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3
and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory?
Inventory turnover
Days' sales in inventory
Year 1
$361,300
94,500
Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2.
Numerator / Denominator
Inventory turnover
Days' sales in inventory
Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3.
Numerator / Denominator
Ratio
< Prev
0
0
4 of 9 #
Did Palmer improve its (a) inventory turnover from Year 2 to Year 3 and (b) days' sales in inventory from Year 2 to Year 3?
(a) Did Palmer improve its inventory turnover from Year 2 to Year 3?
(b) Did Palmer improve its days' sales in inventory from Year 2 to Year 3?
Next
Ratio
0
0
Transcribed Image Text:Exercise 5-19 (Algo) Inventory turnover and days' sales in inventory LO A3 The following is information for Palmer Company. Year 3 $ 613,825 99,400 Cost of goods sold Ending inventory Year 2 $ 396,650 89,750 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory? Inventory turnover Days' sales in inventory Year 1 $361,300 94,500 Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2. Numerator / Denominator Inventory turnover Days' sales in inventory Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Numerator / Denominator Ratio < Prev 0 0 4 of 9 # Did Palmer improve its (a) inventory turnover from Year 2 to Year 3 and (b) days' sales in inventory from Year 2 to Year 3? (a) Did Palmer improve its inventory turnover from Year 2 to Year 3? (b) Did Palmer improve its days' sales in inventory from Year 2 to Year 3? Next Ratio 0 0
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