Using the data in M7-3, calculate to one decimal place the inventory turnover ratio and days to
Question:
Data From M7-3
1.Declining Cost 2. Rising Costs
a. Lowest net income
b. Lowest ending inventory
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,... Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Inventory Turnover Ratio 3976 million 31 times per year 129...View the full answer
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Related Book For 
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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