Compute Altoona Company's (a) inventory turnover ratio and (b) number of days' sales in inventory ratio, using the following information. Use 365 days year. Round your intermediate calculations to 2 decimal places and final answers to 1 decimal place. Cost of Goods Sold $730,000 Beginning Inventory 53,000 Ending Inventory 68,000 (a) Inventory Turnover Ratio 60,500 (b) Number of Days' Sales in Inventory Ratio 200 Feedback Check My Work a. Refer to the textbook for the inventory turnover ratio formula. Consider the average inventory portion of the formula carefully. b. Average inventory utilizes the total number of days in a year to determine the number of days' sales in inventory ratio. (Refer to the textbook for the formula).
Compute Altoona Company's (a) inventory turnover ratio and (b) number of days' sales in inventory ratio, using the following information. Use 365 days year. Round your intermediate calculations to 2 decimal places and final answers to 1 decimal place. Cost of Goods Sold $730,000 Beginning Inventory 53,000 Ending Inventory 68,000 (a) Inventory Turnover Ratio 60,500 (b) Number of Days' Sales in Inventory Ratio 200 Feedback Check My Work a. Refer to the textbook for the inventory turnover ratio formula. Consider the average inventory portion of the formula carefully. b. Average inventory utilizes the total number of days in a year to determine the number of days' sales in inventory ratio. (Refer to the textbook for the formula).
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 58E: Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following...
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