The following data are taken from the financial statements:
$\begin{array}{lll}
\text { Preceding } & \text { Current } \
\text { Year } & \text { Year }\
\$ 4,056,000 & \$ 3,592,000 & \text { Net sales } \
2,656,000 & 2,092,000 & \text { Cost of goods sold } \
328,000 & 332,000 & \text { Average monthly inventory } \
347,000 & 372,000 & \text { Inventor, end of year }
\end{array}$
(a)Determine for each year (1) the invent ory tumover and (2) the number of days s ales in inventary.
(b)Comment on the favorable and unfavor able trends revealed by the data.

Question

The following data are taken from the financial statements:
 $\begin{array}{lll}
\text { Preceding } & \text { Current } \
\text { Year } & \text { Year }\
\$ 4,056,000 & \$ 3,592,000 & \text { Net sales } \
2,656,000 & 2,092,000 & \text { Cost of goods sold } \
328,000 & 332,000 & \text { Average monthly inventory } \
347,000 & 372,000 & \text { Inventor, end of year }
\end{array}$
 (a)Determine for each year (1) the invent ory tumover and (2) the number of days s ales in inventary.
(b)Comment on the favorable and unfavor able trends revealed by the data.

Quizplus · Accepted Answer

The Answer of The following data are taken from the financial statements:
 $\begin{array}{lll}
\text { Preceding } & \text { Current } \
\text { Year } & \text { Year }\
\$ 4,056,000 & \$ 3,592,000 & \text { Net sales } \
2,656,000 & 2,092,000 & \text { Cost of goods sold } \
328,000 & 332,000 & \text { Average monthly inventory } \
347,000 & 372,000 & \text { Inventor, end of year }
\end{array}$
 (a)Determine for each year (1) the invent ory tumover and (2) the number of days s ales in inventary.
(b)Comment on the favorable and unfavor able trends revealed by the data.

The Following Data Are Taken from the Financial Statements (A)Determine for Each Year (1) the Invent Ory Tumover and