The following is information for Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $426,650 $ 391,300 Ending inventory 97,400 87,750 92,500 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?
The following is information for Palmer Company. Year 3 Year 2 Year 1 Cost of goods sold $ 643,825 $426,650 $ 391,300 Ending inventory 97,400 87,750 92,500 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?
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
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![The following is information for Palmer
Company. Year 3 Year 2 Year 1 Cost of
goods sold $ 643,825 $426,650 $
391,300 Ending inventory 97,400
87,750 92,500 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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdc853ad7-71cd-4a64-b5ba-9118678f971e%2F7cf0c56e-3946-4bca-b2f9-85cea8ee68df%2Fxaauopx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following is information for Palmer
Company. Year 3 Year 2 Year 1 Cost of
goods sold $ 643,825 $426,650 $
391,300 Ending inventory 97,400
87,750 92,500 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?
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