Refer to the data in BE 6-15 for Reynold's Company. Assume for 2013 the company had an
Question:
IN BE 6-15
Reynold's Company had net sales of $2,500,000, cost of goods sold of $1,150,000, and profit of $500,000 in 2014. The company had a January 1, 2014, inventory balance of $132,000 and a December 31, 2014, inventory balance of $143,000. Calculate the inventory turnover and days sales in inventory ratios for 2014.
Inventory Turnover Ratio
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,...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
Question Posted: