The cost of goods sold computations for Silver Company and Gold Company are shown below.

Instructions
(a) Compute inventory turnover and days in inventory for each company.
(b) Which company moves its inventory morequickly?

Transcribed Image Text:

Beginning inventory Cost of goods purchased Cost of goods available for salc Ending inventory Silver Company $ 47,000 200,000 247,000 55,000 $192,000 Gold Company $ 71,000 290,000 361,000 69,000 $292,000 Cost of goods sold