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Inventory Turnover and Days' Sales in Inventory The Southern Company installed a new inventory management system at the beginning of 2012. Shown below are data
Inventory Turnover and Days' Sales in Inventory The Southern Company installed a new inventory management system at the beginning of 2012. Shown below are data from the company's accounting records as reported out by the new system:
2012 | 2013 | |
---|---|---|
Sales Revenue | $8,900,000 | $10,900,000 |
Cost of Goods Sold | 4,900,000 | 5,800,000 |
Beginning Inventory | 590,000 | 620,000 |
Ending Inventory | 620,000 | 690,000 |
Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2012 and 2013. Round your answer to two decimal points.
2012 | 2013 | |
---|---|---|
Inventory turnover | ||
Days' sales in inventory |
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