Question: Can you please help look over my work and guide me on how to use the correct formula for solving the problem? Thanks so much
Can you please help look over my work and guide me on how to use the correct formula for solving the problem?
Thanks so much
The following data are taken from the financial statements:
Current Year Preceding Year
Net sales $3,592,000 $4,056,000
Cost of goods sold $2,092,000 $2,656,000
Average monthly inventory $332,000 $328,000
Inventory, end of year $372,000 $347,000
a.Determine for each year (1) the inventory turnover and (2) the days' sales in inventory. Round inventory turnover answers to one decimal place and number of days' sales in inventory, (including intermediate calculations) to two decimal places.
My answers, but they are incorrect?
Current Year Preceding Year
1.Inventory turnover $372,000 $347,000
2.Number of days' sales in inventory 64.90 47.69
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