Refer to the data in BE6-15 for Reynold's Company. Assume for 2016 the company had an inventory

Question:

Refer to the data in BE6-15 for Reynold's Company.
Assume for 2016 the company had an of 9.1 and 40.1 days sales in inventory. Has the company's inventory management improved or deteriorated in 2017? Explain.
Refer to data in EB6-15,
Reynold's Company had net sales of $2,500,000, cost of goods sold of $1,150,000, and profit of $500,000 in 2017. The company had a January 1, 2017, inventory balance of $132,000 and a December 31, 2017, inventory balance of $143,000. Calculate the inventory turnover and days sales in inventory ratios for 2017?
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,...