Answered step by step
Verified Expert Solution
Question
1 Approved Answer
heridan Company reported the following information for a three-year period: 2021 2020 2019 Ending inventory $19,000 $28,000 $34,000 Sales 139,000 143,000 111,000 Cost of goods
heridan Company reported the following information for a three-year period:
2021 | 2020 | 2019 | |||||||
---|---|---|---|---|---|---|---|---|---|
Ending inventory | $19,000 | $28,000 | $34,000 | ||||||
Sales | 139,000 | 143,000 | 111,000 | ||||||
Cost of goods sold | 59,770 | 61,490 | 47,730 | ||||||
Profit | 27,000 | 40,000 | 42,000 |
Calculate the inventory turnover, days sales in inventory, and gross profit margin for 2021 and 2020. (Round number of days answers to 0 decimal places, e.g. 52. Round other answers to 2 decimal places, e.g. 52.75. Use 365 days for calculation.)
2021 | 2020 | |||||
---|---|---|---|---|---|---|
Inventory turnover | enter Inventory turnover in times rounded to 2 decimal places | times | enter Inventory turnover in times rounded to 2 decimal places | times | ||
Days sales in inventory | enter a number of days rounded to 0 decimal places | days | enter a number of days rounded to 0 decimal places | days | ||
Gross profit margin | enter percentages rounded to 2 decimal places | % | enter percentages rounded to 2 decimal places | % |
Based on this information, does the companys liquidity appear to be improving or deteriorating?
The companys liquidity appears to be select an option deterioratingimproving |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started