Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Inventory turnover and number of days sales in inventory Financial statement data for years ending December 3 1 for Tango Company follow: Line Item Description

Inventory turnover and number of days sales in inventory
Financial statement data for years ending December 31 for Tango Company follow:
Line Item Description 20Y720Y6
Cost of goods sold $3,864,000 $4,001,500
Inventories:
Beginning of year 770,000740,000
End of year 840,000770,000
Required
a. Determine the inventory turnover for 20Y7 and 20Y6. Round your answers to one decimal place.
Line Item Description 20Y720Y6
Inventory turnover fill in the blank 1 of 2
fill in the blank 2 of 2
b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days a year. Round your answers to one decimal place.
Line Item Description 20Y720Y6
Number of days sales in inventory fill in the blank 1 of 2
days fill in the blank 2 of 2
days
c. Are the changes in inventory turnover and the days sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?

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

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

3rd Edition

0324002327, 978-0324002324

More Books

Students also viewed these Accounting questions