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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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