Use the following information for Palmer Co. to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. (Round answers to one decimal.) Comment on Palmer's efficiency in using its assets to increase sales from Year 2 to Year 3. 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 following information for Palmer Co. to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. (Round answers to one decimal.) Comment on Palmer's efficiency in using its assets to increase sales from Year 2 to Year 3. Year 3 Year 2 Year 1 Cost of goods sold $643,825 $426,650 $391,300 Ending inventory 97,400 87,750 92,500
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.
![Exercise 6-13 Inventory turnover and days' sales in inventory LA3 0
Use the following information for Palmer Co. to compute inventory turnover for Year 3 and Year 2, and its
days' sales in inventory at December 31, Year 3 and Year 2. (Round answers to one decimal.) Comment on
Palmer's efficiency in using its assets to increase sales from Year 2 to Year 3.
Year 3
Year 2
Year 1
Cost of goods sold $643,825 $426,650 $391,300
Ending inventory
97,400
87,750
92,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe46867b-8e32-4051-86e0-c12e0211534e%2F2769b4f6-2294-4f03-b494-e1b937d77106%2Fmzvpgx9_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 6-13 Inventory turnover and days' sales in inventory LA3 0
Use the following information for Palmer Co. to compute inventory turnover for Year 3 and Year 2, and its
days' sales in inventory at December 31, Year 3 and Year 2. (Round answers to one decimal.) Comment on
Palmer's efficiency in using its assets to increase sales from Year 2 to Year 3.
Year 3
Year 2
Year 1
Cost of goods sold $643,825 $426,650 $391,300
Ending inventory
97,400
87,750
92,500
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