Question
Has inventory turnover improved? A firms balance sheets for the last two years are as follows: Year 2019 Assets Liabilities and Equity Cash $ 9,000
Has inventory turnover improved?
A firms balance sheets for the last two years are as follows:
Year 2019
Assets Liabilities and Equity
Cash $ 9,000 Accounts payable $12,000
Market securities 10,000 Accruals 10,000
Accounts receivable 21,000 Current bank note 10,000
Inventory 20,000 Long-term debt 30,000
Plant 40,000 Common stock 14,000
Retained earnings 24,000
$100,000 $100,000
Year 2020
Assets Liabilities and Equity
Cash $12,000 Accounts payable $12,000
Market securities 18,000 Accruals 10,000
Accounts receivable 18,000 Current bank note 30,000
Inventory 10,000 Long-term debt 10,000
Plant 42,000 Common stock 18,000
Retained earnings 20,000
$100,000 $100,000
Sales in 2019 were $500,000. Sales in 2020 were $500,000.
Has inventory turnover improved?
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