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Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places.) Calculate the number of days' sales in inventory for 2019, using year-end inventories.

User Ecc
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1 Answer

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Answer and Explanation:

The computation is shown below:

(a) Inventory turnover is

= Cost of goods sold ÷ Average inventory

= $605,900 ÷ $170,000

= 3.56 Times

And

(b) Number of days sales in inventory is

= Year end inventory × total number of days in a year ÷ cost of goods sold

= $157,700 × 365 ÷ $605,900

= 95 days

We simply applied the above formula so that the correct value could come

And, the same is to be considered

Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places-example-1
User Trivelt
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