Computing Inventory Ratios:

The company reported the following information for the year:

Compute (1) inventory turnover and (2) the number of days’ sales in inventory.
 

Transcribed Image Text:

Beginning accounts receivable. Sales Ending Inventory Ending accounts receivable Cost of goods sold Beginning Inventory $2,000 8,000 3,000 2,400 4,200 2,600 Beginning accounts receivable. Sales Ending Inventory Ending accounts receivable Cost of goods sold Beginning Inventory $2,000 8,000 3,000 2,400 4,200 2,600

Answer rating: 100% (QA)

Computation of the Inventory Ratios Inventory Turnover Inventory Turnover is a measure of how many t... View the full answer