INVENTORY. On January 1, 20X6, the River Company's beginning inventory $400,000. During 20X6, River purchased $1,900,000 of additional inventory. On December 31, 20X6, River's ending inventory was $500,000. a. What is the inventory turnover and the age of inventory for 20X6? b. If the inventory turnover in 20X5 was 3.3 and the average age of the inventory was 100.6 days, evaluate the results 20X6.

INVENTORY. On January 1, 20X6, the River Company's beginning inventory $400,000. During 20X6, River purchased $1,900,000 of additional inventory. On December 31, 20X6, River's ending inventory was $500,000. a. What is the inventory turnover and the age of inventory for 20X6? b. If the inventory turnover in 20X5 was 3.3 and the average age of the inventory was 100.6 days, evaluate the results 20X6.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
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