Effect of Inventory Errors

During the taking of its physical inventory on August 31, 20Y7, Robin Interiors Company incorrectly counted its inventory as $543,500 instead of the correct amount of $560,700. Indicate the effect of the misstatement on Robin Interiors August 31, 20Y7, balance sheet and income statement for the year ended August 31, 20Y7.

Inventory Turnover and Days Sales in Inventory

Financial statement data for years ending December 31 for Amsterdam Company follow:

20Y4 20Y3

Cost of merchandise sold $3,598,900 $3,015,630

Inventories:

Beginning of year 593,000 589,600

End of year 648,000 593,000

A. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.

B. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place.