Financial statement data for years ending December 31 for Salsa Company follow: 20Υ7 20Υ6 Cost of merchandise sold $2,912,700 $3,009,790 Inventories: Beginning of year 489,000 481,900 End of year 533,000 489,000 a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. Inventory Turnover 20Υ7 20Y6 b. Determine the days' sales in inventory for 20Y7 and 20Y6. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 20Υ7 days 20Y6 days c. Does the change in the inventory turnover and the days' sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend? Unfavorable v

Financial statement data for years ending December 31 for Salsa Company follow: 20Υ7 20Υ6 Cost of merchandise sold $2,912,700 $3,009,790 Inventories: Beginning of year 489,000 481,900 End of year 533,000 489,000 a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. Inventory Turnover 20Υ7 20Y6 b. Determine the days' sales in inventory for 20Y7 and 20Y6. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 20Υ7 days 20Y6 days c. Does the change in the inventory turnover and the days' sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend? Unfavorable v

Name: Inventory Turnover and Days' Sales in InventoryFinancial statement da
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Description: Inventory Turnover and Days' Sales in InventoryFinancial statement data for years ending December 31 for Salsa Company follow:20Y720Υ6Cost of merchandise sold$2,912,700$3,009,790Inventories:Beginning of year489,000481,900End of year533,000489,000a.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 8PEB: Financial statement data for years ending December 31 for Tango Company follow: a. Determine the...

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Financial statement data for years ending December 31 for Tango Company follow: a. Determine the inventory turnover for 20Y7 and 20Y6. b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
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