Inventory Turnover and Days' Sales in InventoryThe Southern Company installed a new inventory management system at the beginning of Year 1.Shown below are data from the company's accounting records as reported by the new system:Year 1Year 258.000,000 $10,000,000Sales revenueCost of goods sold4,000,0004,900,000Beginning inventory500,000530,000Ending inventory530,000600,000Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years.Round to two decimals. Use the rounded answers in your calculations.Year 1Year 2(a) Inventory turnover(b) Days' sales in inventory

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Description: Inventory Turnover and Days' Sales in InventoryThe Southern Company installed a new inventory management system at the beginning of Year 1.Shown below are data from the company's accounting records as reported by the new system:Year 1Year 258.000,00

Inventory Turnover=Cost of goods soldAverage value of Inventory Average Inventory= (Beginning…

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The Southern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 1 Year 2 Sales revenue $8,000,000 $10.000,000 Cost of goods sold 4,000,000 4,900,000 Beginning inventory 500,000 530,000 Ending inventory 530,000 600,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations.

The Southern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 1 Year 2 Sales revenue $8,000,000 $10.000,000 Cost of goods sold 4,000,000 4,900,000 Beginning inventory 500,000 530,000 Ending inventory 530,000 600,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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