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Analyze inventory turnover for XYZ Corporation using the following data: Year Cost of Goods Sold ($) Average Inventory ($) Year 1 $200,000 $50,000 Year 2
- Analyze inventory turnover for XYZ Corporation using the following data:
| Year | Cost of Goods Sold ($) | Average Inventory ($) |
|---|---|---|
| Year 1 | $200,000 | $50,000 |
| Year 2 | $220,000 | $55,000 |
| Year 3 | $250,000 | $60,000 |
Requirements:
- Calculate the inventory turnover ratio for each year.
- Present the analysis in a detailed table format.
- Discuss the efficiency of inventory management over time.
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Financial Statement Analysis and Security Valuation
Authors: Stephen Penman
5th edition
78025311, 978-0078025310
