A company reports the following: Cost of goods sold $585,825 Average inventory 78,110 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a.  Inventory turnover   b.  Number of days' sales in inventory  days

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
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A company reports the following:

Cost of goods sold $585,825
Average inventory 78,110

Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year.

a.  Inventory turnover  
b.  Number of days' sales in inventory  days
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