Inventory Turnover and Days' Sales in InventoryFinancial statement data for years ending December 31 for Amsterdam Company follow:20Y420Υ3Cost of merchandise sold$1,594,320$977,762Inventories:Beginning of year310,980217,540End of year448,220310,980a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.Inventory Turnover20Y420Υ3b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and finalanswers to one decimal place.Days' Sales in Inventorydays20Υ4days20Υ3C. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or anunfavorable trend?Favorable V7:02 110/23/8.

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Description: Inventory Turnover and Days' Sales in InventoryFinancial statement data for years ending December 31 for Amsterdam Company follow:20Y420Υ3Cost of merchandise sold$1,594,320$977,762Inventories:Beginning of year310,980217,540End of year448,220310,980a

Given Information: 2014 2013 Cost of goods sold $ 1,594,320 $ 977,762 Beginning Inventory…

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Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: 20Υ4 20Υ3 Cost of merchandise sold $1,594,320 $977,762 Inventories: Beginning of year 310,980 217,540 End of year 448,220 310,980 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Υ4 20Y3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and f answers to one decimal place. Days' Sales in Inventory days 20Υ4 days 20Υ3 C. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?

Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: 20Υ4 20Υ3 Cost of merchandise sold $1,594,320 $977,762 Inventories: Beginning of year 310,980 217,540 End of year 448,220 310,980 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Υ4 20Y3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and f answers to one decimal place. Days' Sales in Inventory days 20Υ4 days 20Υ3 C. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 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 8PEA: Financial statement data for years ending December 31 for Holland Company follow: a. Determine the...

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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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