The following is information for Palmer Company. Cost of goods sold Ending inventory Year 3 $ 598,825 100,900 Year 2 $ 381,650 91,250 Year 1 $ 346,300 96,000 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory? Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2. Inventory turnover Days' sales in inventory Numerator / Denominator Ratio 0 0 Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Inventory turnover Days' sales in inventory es Numerator Denominator 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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The following is information for Palmer Company.
Cost of goods sold
Ending inventory
Year 3
$ 598,825
100,900
Year 2
$ 381,650
91,250
Year 1
$ 346,300
96,000
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?
Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2.
Inventory turnover
Days' sales in inventory
Numerator
Denominator
=1
Ratio
0
0
Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3.
Inventory turnover
Days' sales in inventory
ces
Numerator
Denominator
=
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?
Transcribed Image Text:The following is information for Palmer Company. Cost of goods sold Ending inventory Year 3 $ 598,825 100,900 Year 2 $ 381,650 91,250 Year 1 $ 346,300 96,000 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? Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2. Inventory turnover Days' sales in inventory Numerator Denominator =1 Ratio 0 0 Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Inventory turnover Days' sales in inventory ces Numerator Denominator = 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?
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