A company reports the following: Cost of merchandise sold $1,460,000 Average merchandise inventory 182,500 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Assume a 365-c place. a. Inventory turnover b. Number of days' sales in inventory days

A company reports the following: Cost of merchandise sold $1,460,000 Average merchandise inventory 182,500 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Assume a 365-c place. 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

Section: Chapter Questions

Problem 5BE

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Question

A company reports the following:
Cost of merchandise sold
$1,460,000
Average merchandise inventory
182,500
Determine (a) the inventory turnover and (b) the number of days sales in inventory. Assume a 365-day year. Round your answers to one decimal
place.
a. Inventory turnover
b. Number of days' sales in inventory
days
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12/11/2020
a

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