1. eBook

   Inventory Analysis

   The following account balances are taken from the records of Joyce Enterprises, a wholesaler of fresh fruits and vegetables:

   	December 31
   	2017	2016	2015
   Merchandise inventory	$195,000	$170,000	$120,000
   	2017	2016
   Cost of goods sold	$6,930,000	$8,100,000

   Required: (Assume 360 days in a year.)

   1. Joyce's inventory turnover ratio for 2017 and 2016, respectively, are

   55.86 times45.86 times54.86 times37.97 times

   and

   55.86 times45.86 times54.86 times37.97 times

   .2. Its number of days' sales in inventory for 2017 and 2016, respectively, are

   9.5 days13.5 days8 days6.4 days

   and

   9.5 days13.5 days8 days6.4 days

   .3. The average age of its inventory has

   increaseddecreased

   significantly from the prior period. The company may decide that they have problems with the

   cash receiptssales effortasset turnover

   or the inventory is

   highlow

   quality or the products are priced too

   highlow

   .