Question
EXERCISE 12: EFFECTS OF CHANGES IN INVENTORY TURNOVER ON INVENTORY LEVEL Digoa Corp. Provides you the following data: Annual sales 396,000 Cost % 70% Average
EXERCISE 12: EFFECTS OF CHANGES IN INVENTORY TURNOVER ON INVENTORY LEVEL
Digoa Corp. Provides you the following data: Annual sales 396,000 Cost % 70% Average Inventory 50,000
Required:
a.) Inventory turnover rate at present.
b.) Number of days sales in the average inventory
c.) Average inventory assuming that desired turnover rate were 12x in one year.
Show and please explain solution
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
