Question
In: Accounting
Inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December...
Inventory Turnover and Days' Sales in Inventory
The following financial statement data for years ending December 31 for Holland Company are shown below.
| 20Y4 | 20Y3 | ||||||
| Cost of merchandise sold | $1,778,280 | $1,093,905 | |||||
| Inventories: | |||||||
| Beginning of year | 347,480 | 243,820 | |||||
| End of year | 499,320 | 347,480 | |||||
a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.
| Inventory Turnover | |
| 20Y4 | |
| 20Y3 |
b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place.
| Days' Sales in Inventory | |
| 20Y4 | days |
| 20Y3 | days |
c. Does the change in inventory turnover and
the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable
or an unfavorable trend?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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$385,000,000
Required:
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$
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Round to two decimal places.
times
3. Calculate the inventory turnover in days.
Round to two decimal places.
days
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Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . ....
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1,411.3
a. & b. Determine...
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