Question
A company reported the following data: Year 1 Year 2 Cost of goods sold $425,000 $486,000 Ending inventory 140,000 175,000 Required : 1. Calculate the
A company reported the following data:
| Year 1 | Year 2 | |
| Cost of goods sold | $425,000 | $486,000 |
| Ending inventory | 140,000 | 175,000 |
Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
