A company reported the following data:
$$\begin{array} { | l | r | r | r | }
\hline & { \text { Year 1 } } & { \text { Year 2 } } & { \text { Year 3 } } \
\hline \text { Cost of goods sold } & \$ 347,600 & \$ 79,650 & \$ 443,900 \
\hline \text { Average inventory } & 85,000 & 91,050 & 98,350 \
\hline
\end{array}$$
Required:
1.Calculate the company's merchandise inventory turnover for each year.
2.Comment on the company's efficiency in managing its inventory.

Question

A company reported the following data:
 $$\begin{array} { | l | r | r | r | } 
\hline &  { \text { Year 1 } } &  { \text { Year 2 } } &  { \text { Year 3 } } \
\hline \text { Cost of goods sold } & \$ 347,600 & \$ 79,650 & \$ 443,900 \
\hline \text { Average inventory } & 85,000 & 91,050 & 98,350 \
\hline
\end{array}$$ 
Required:
1.Calculate the company's merchandise inventory turnover for each year.
2.Comment on the company's efficiency in managing its inventory.

Quizplus · Accepted Answer

The Answer of A company reported the following data:
 $$\begin{array} { | l | r | r | r | } 
\hline &  { \text { Year 1 } } &  { \text { Year 2 } } &  { \text { Year 3 } } \
\hline \text { Cost of goods sold } & \$ 347,600 & \$ 79,650 & \$ 443,900 \
\hline \text { Average inventory } & 85,000 & 91,050 & 98,350 \
\hline
\end{array}$$ 
Required:
1.Calculate the company's merchandise inventory turnover for each year.
2.Comment on the company's efficiency in managing its inventory.

A Company Reported the Following Data Required: 1

A Company Reported the Following Data Required:
1