Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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

Audit Regulations Audit Market Structure And Financial Reporting Quality Foundations And Trends R In Accounting

Authors: Christopher Bleibtreu, Ulrike Stefani

1st Edition

1680839004, 978-1680839005

More Books

Students also viewed these Accounting questions

Question

Do you think physicians should have unions? Why or why not?

Answered: 1 week ago