Dell Inc. is the leading manufacturer of personal computers. In a recent year, it reported the following
Question:
Dell Inc. is the leading manufacturer of personal computers. In a recent year, it reported the following in dollars in millions:
Net sales revenue .... $62,071
Cost of sales ...... 48,260
Beginning inventory .... 1,301
Ending inventory ...... 1,404
Required:
1. Determine the inventory turnover ratio and average days to sell inventory for the current year.
2. Explain the meaning of each number.
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting
ISBN: 978-0078025556
8th edition
Authors: Robert Libby, Patricia Libby, Daniel Short
Question Posted: