The initial analysis should include the following:The ratio equationThe calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook. Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income. Then explain whether this is a good result or a result that needs improving.Use citations to cite any outside sources used.The original post should include at least three (3) sentences but no more than seven (7) sentences. Exercise 6-13 Inventory turnover and days' sales in inventory LA3 0Use the following information for Palmer Co. to compute inventory turnover for Year 3 and Year 2, and itsdays' sales in inventory at December 31, Year 3 and Year 2. (Round answers to one decimal.) Comment onPalmer's efficiency in using its assets to increase sales from Year 2 to Year 3.Year 3Year 2Year 1Cost of goods sold $643,825 $426,650 $391,300Ending inventory97,40087,75092,500

Ending inventory means the value of an inventory which a company is on hand at the end of the…

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10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

The initial analysis should include the following:

The ratio equation
The calculation of the ratio using the equation and the pre-assigned Quick Study or Exercise from the textbook.
Use the result in a sentence; i.e. For every dollar invested in assets the company is earning 22.4 cents or 22.4% in net income.
Then explain whether this is a good result or a result that needs improving.
Use citations to cite any outside sources used.
The original post should include at least three (3) sentences but no more than seven (7) sentences.