Inventory turnover ratio : This is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory during an accounting period. It is calculated by using the following formula: Inventory turnover = Cost of goods sold Average inventory Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them. Days' sales in inventory = Days in accounting period Inventory turnover To Compute: The inventory turnover ratio, and days’ sales in inventory for Incorporation F for 2016 and 2017.

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Chapter 6, Problem 6.3BDIE

To determine

Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

To Compute: The inventory turnover ratio, and days’ sales in inventory for Incorporation F for 2016 and

2017.

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