Refer to the information in Exercise 17-6 and calculate the days sales in inventory for Furniture Retailers

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Refer to the information in Exercise 17-6 and calculate the days’ sales in inventory for Furniture Retailers and Custom Furniture Corp for 2020 (round to two decimal places). Which company has the more favourable ratio? Explain why.


Exercise 17-6

(millons of $) Furniture Fresh-cut Custom Furniture Computer Inc. Retallers Flowers Inc. Corp 2020 2019 2020 2019 2020 2019 2020 2019 Cost of goods sold.. $1,491 $1,009 $3,345 $2,270 $2,040 $2,685 $2,670 $1,770 Inventory.. 258 222 271 130 22 9 87 174

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Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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