Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am wondering why the answer is wrong for the inventory turnover ratio. is it not 55900/(5400+5000)? Marigold Foods Inc. reported inventory of $5,400 million

I am wondering why the answer is wrong for the inventory turnover ratio.

is it not 55900/(5400+5000)?

image text in transcribed
Marigold Foods Inc. reported inventory of $5,400 million at the end of its 2020 fiscal year and $5,000 million at the end of its 2019 fiscal year. It reported cost of goods sold of $36,100 million for the fiscal year 2020 and net sales of $55,900 million for fiscal year 2020. Calculate the company's inventory turnover and the average days to sell inventory for the fiscal year 2020. (Round answers to 2 decimal places, e.g. 52.75. Use 365 days for calculation.) Inventory Turnover Ratio 10.75 times per year Average days to sell inventory 52.58 days If the turnover ratio was 6 times in 2019, was there an improvement or a deterioration in the company's ability to turn over inventory in 2020? Inventory turnover Improved

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Charles T Horngren, Walter T Harrison

9th Edition

132959674, 978-0132569057

More Books

Students also viewed these Accounting questions