Question
Perez Corporation has the following financial data for the years 20X1 and 20X2: 20X1 20X2 Sales $ 5,868,000 $ 6,708,000 Cost of goods sold 4,645,500
Perez Corporation has the following financial data for the years 20X1 and 20X2:
| 20X1 | 20X2 | ||||
| Sales | $ | 5,868,000 | $ | 6,708,000 | |
| Cost of goods sold | 4,645,500 | 5,869,500 | |||
| Inventory | 489,000 | 559,000 | |||
a. Compute the inventory turnover for each year using the formula Sales/Inventory. (Round your answers to 2 decimal places.)
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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Your Human Resources Department A Step By Step Guide To Assessing The Key Areas Of Your Program
Authors: John H. McConnell
2nd Edition
0814416616, 978-0814416617
