30 November, 2012

Account Payable 25,200.

Acc. Depriaciation Equip. 22,000.

Cash 400,000

Account Payable7,000

Acc. Depriaciation Equip. 9,000

Equipment 50,000

Cost of Goods Sold 510,000

Dividends80,000

Freight-out 60,000

Interest Expense 78,000

Interest Revenue 6,000

Inventory 20,000

Miscellaneous Expense

Notes Payable 37,000

Notes Receiveable 31,300

Prepaid Insurance 17,000

Rent Expense 9,000

Salaries and Wages Exp. 10,000

Sales Commisions Exp. 20,000

Sales Returns and allowance 25,000

Sales Revenue 700,000

Share Capital-ordinary 45,000

Ultilities Expense 8,000

Instructions:

Compute inventory turnover and days in inventory. Explain the analysis