Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year $1,357,800 99,002 678,900 89,602 Sales $1,419,100 93,968 788,400 99,002 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 Beginning inventories Cost of merchandise sold Ending inventories 1. Inventory turnover 2. Number of days' sales in inventory b. The inventory turnover has Prior Year faster than the inventory, resulting in a Prior Year days days , while the number of days' sales in inventory has inventory position. . The sales volume has

Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year $1,357,800 99,002 678,900 89,602 Sales $1,419,100 93,968 788,400 99,002 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 Beginning inventories Cost of merchandise sold Ending inventories 1. Inventory turnover 2. Number of days' sales in inventory b. The inventory turnover has Prior Year faster than the inventory, resulting in a Prior Year days days , while the number of days' sales in inventory has inventory position. . The sales volume has

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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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
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