Concept explainers
Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory during an accounting period. It is calculated by using the following formula:
Days in inventory: Days in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.
To Calculate: The inventory turnover and days’ sales in inventory of B Communication.
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Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (6th Edition)
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