A7X Corporation has ending inventory of $686,373 and cost of goods sold for the year just ended was $4,765,135. a. What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the days' sales in inventory? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How long on average did a unit of inventory sit on the shelf before it was sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Inventory turnover b. Days' sales in inventory Days on the shelf C. times days days
A7X Corporation has ending inventory of $686,373 and cost of goods sold for the year just ended was $4,765,135. a. What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the days' sales in inventory? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How long on average did a unit of inventory sit on the shelf before it was sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Inventory turnover b. Days' sales in inventory Days on the shelf C. times days days
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 46E
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Transcribed Image Text:A7X Corporation has ending inventory of $686,373 and cost of goods sold for the year
just ended was $4,765,135.
a. What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2
decimal places, e.g., 32.16.)
b. What is the days' sales in inventory? (Do not round intermediate calculations and round your answer
to 2 decimal places, e.g., 32.16.)
c. How long on average did a unit of inventory sit on the shelf before it was sold? (Do not round
intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a.
Inventory turnover
b. Days' sales in inventory
Days on the shelf
C.
times
days
days
Expert Solution
Step 1
Inventory turnover is one of the efficiency ratio which shows how many times inventory is sold in the particular period. This is calculated by dividing cost of goods sold by ending inventory.
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