Financial statement data for years ending December 31 for Tango Company follow: 20Υ7 20Υ6 Cost of merchandise sold $3,864,000 $4,001,500 Inventories: Beginning of year End of year 770,000 740,000 770,000 840,000 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?
Financial statement data for years ending December 31 for Tango Company follow: 20Υ7 20Υ6 Cost of merchandise sold $3,864,000 $4,001,500 Inventories: Beginning of year End of year 770,000 740,000 770,000 840,000 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?
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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