The Northern Company installed a new inventory management system at the beginning of Year 1. Shown...

Transcribed Image Text:

The Northern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 2 Year 1 $18.000.000 $22.000.000 Sales revenue Cost of goods sold Beginning inventory 10,000,000 11,800,000 900,000 945,000 Ending inventory 945,000 1,050,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations. Year 1 Year 2 (a) Inventory tumover 0 (b) Days' sales in inventory 0 The Northern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 2 Year 1 $18.000.000 $22.000.000 Sales revenue Cost of goods sold Beginning inventory 10,000,000 11,800,000 900,000 945,000 Ending inventory 945,000 1,050,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations. Year 1 Year 2 (a) Inventory tumover 0 (b) Days' sales in inventory 0

Answer rating: 100% (QA)

Calculating Averge Inventory Particulars Year1 Year2 Beginning Inventory 900000 94... View the full answer