Question: 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.

Computing Inventory Ratios:

The company reported the following information for the year:

Beginning accounts receivable. Sales Ending Inventory Ending accounts receivable Cost of goods

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

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

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