ovember 30, 2019

Trial Balance:

Cash $25,212.00 Acc. Depriaciation Equip. $22,000.00 Equipment $154,300.00 Cost of Goods Sold $507,000.00 Dividends $8,000.00 Freight-out $6,500.00 Interest Expense $6,100.00 Interest Revenue $7,964.00 Inventory $26,000.00 Notes Receiveable $31,300.00 Prepaid Insurance $10,500.00 Rent Expense $15,000.00 Retained Earnings $61,700.00 Salaries and Wages Exp. $96,000.00 Sales Commisions Exp. $6,500.00 Sales Returns and allowance $9,000.00 Sales Revenue $706,000.00 Share Capital-ordinary $50,000.00 Ultilities Expense $8,000.00 Account Payable $25,200.00 Miscellaneous Expense $452.00 Notes Payable $37,000.00

Additional data:

-Depreciation expense for the month: 11,000

-Insurance expired for November: 7,000

-Property tax payable not yet recorded: 3,500

-Sales commission payable not yet recorded: 7,000

-Cash balance per bank, November 30: 25,121

-November bank service charge not recorded by the depositor: 28

-Deposits in transit, November 30: 1,500

-Bank collected 800 note for the company in November, plus interest 36, less fee 20.

-The collection has not been recorded by the company and no interest has been

accrued.

-Outstanding checks, November 30: 621

-Inventory on December 1, 2018: 20,000

-From an internal audit it is known that for the inventory, the same person perform

ordering items, receiving the items, and receiving the invoice.

Compute Inventory turnover and Days in inventory. Explain your analysis.