Question
Cost of sales for the year ended June 30, 2020 $ 510,000 Inventory balance on June 30, 2019 125,000
- Cost of sales for the year ended June 30, 2020 $ 510,000
Inventory balance on June 30, 2019 125,000
Inventory balance on June 30, 2020 165,000
Based on the values given above, what would you advise to the company towards improving the relevant ratio? (Necessary calculations and assumptions should be applied)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To improve the relevant ratio we need to calculate and analyze the inventory turnover ratio which measures how efficiently a company manages its inven...
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Step: 2
Step: 3
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
