A company reported the following data:
$$\begin{array} { | l | r | r | }
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Cost of goods sold } & \$ 425,000 & \$ 486,000 \
\hline \text { Foding inventory } & 140,000 & 175,000 \
\hline
\end{array}$$ Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

Question

A company reported the following data:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Cost of goods sold } & \$ 425,000 & \$ 486,000 \
\hline \text { Foding inventory } & 140,000 & 175,000 \
\hline
\end{array}$$ Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

Quizplus · Accepted Answer

The Answer of A company reported the following data:
 $$\begin{array} { | l | r | r | } 
\hline & \text { Year 1 } & \text { Year 2 } \
\hline \text { Cost of goods sold } & \$ 425,000 & \$ 486,000 \
\hline \text { Foding inventory } & 140,000 & 175,000 \
\hline
\end{array}$$ Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

A Company Reported the Following Data Required: 1

A Company Reported the Following Data Required:
1