Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $1,211,800 $1,261,400 Beginning inventories 81,588 90,788 Cost of merchandise sold 605,900 700,800 Ending inventories 73,788 81,588 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Prior Year 1. Inventory turnover 7.8 V 8.1 V 2. Number of days' sales in inventory 46.8 V days 45.1 x days

Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $1,211,800 $1,261,400 Beginning inventories 81,588 90,788 Cost of merchandise sold 605,900 700,800 Ending inventories 73,788 81,588 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Prior Year 1. Inventory turnover 7.8 V 8.1 V 2. Number of days' sales in inventory 46.8 V days 45.1 x 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 11E

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Financial statement data for years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
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