Home / Questions / Inventory Turnover and Daysâ Sales in Inventory The Eastern Corporation installed a new ...
Inventory Turnover and Daysâ Sales in Inventory The Eastern Corporation installed a new inventory management system at the beginning of 2015. Eastern reported an inventory turnover of 2.80 in 2015. Shown below are data from the companyâs accounting records as reported by the new system:
| 2015 | 2016 | |
|---|---|---|
| Sales Revenue | $19,000,000 | $20,000,000 |
| Cost of goods sold | 8,500,000 | 8,900,000 |
| Beginning inventory | 2,500,000 | 2,530,000 |
| Ending inventory | 2,530,000 | 2,600,000 |
Calculate the companyâs (a) inventory turnover and (b) daysâ sales in inventory for 2015 and 2016.
Round your answers to two decimal points. HINT: Use your rounded answers for inventory turnover to calculate days' sales in inventory.
| 2015 | 2016 | |
|---|---|---|
| Inventory turnover | Answer | Answer |
| Days' sales in inventory | Answer | Answer |
Jul 04 2021 View more View Less
What kind of journal does Sales/Purchase returns and allowances go into?
Jul 30 2021The Wind Tower Trade Coalition is an association of domestic manufacturers of utility-scale wind towers. The Coalition filed a suit in the U.S. Court of International Tr...
Aug 18 2021Going online for health information. A cyberchondriac is defined as a person who regularly searches the Web for health care information. Each year a Harris Poll is conduc...
Aug 07 2020To have an ethical business climate requires all employees to be dedicated to that goal because: a. employees have to be taught ethical standards. b. managers rarely en...
May 25 2018How do you find the points of intersection of the given curves?
Jul 16 2021Garrison holds a controlling interest in Robertson’s outstanding stock. For the current year, the following information has been gathered about these two companies: Garr...
Jul 21 2020The 1H-NMR spectrum of compound A C6H10Br4, consists of the following signals: δ 2.62 (singlet, 3H), 2.21 (triplet, 2H), 1.31 (sextet, 2H), 0.90 (triplet, 3H). Draw the s...
Jun 21 2020Econe Dresses is a small company that manufactures women’s dresses for sale to specialty stores. It has 1,200 inventory items, and the historical cost is recorded on a f...
Jun 20 2020If economic profit equals accounting profit, what do implicit costs equal?
May 05 2021On a balance sheet, what is the preferable presentation of notes or accounts receivable from officers, employees, or affiliated companies?a.As trade notes and accounts re...
Jan 10 2020