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Perez Corporation has the following financial data for the years 20X1 and 20X2: $ Sales Cost of goods sold Inventory 20x1 $ 3,843,000 2,775,500 427,000
Perez Corporation has the following financial data for the years 20X1 and 20X2: $ Sales Cost of goods sold Inventory 20x1 $ 3,843,000 2,775,500 427,000 20x2 4,500,000 3,500,000 500,000 a. Compute the inventory turnover for each year using the formula Sales/Inventory. (Round your answers to 2 decimal places.) Inventory Turnover Ratio times 20X1 20X2 times b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year. (Round your answers to 2 decimal places.) Inventory Turnover Ratio times 20X1 20X2 times
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