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Problem III - LO 4 - The following data are from the income statements of Zeina's restaurant : (10 points) : Sales Beginning inventory Purchases
Problem III - LO 4 - The following data are from the income statements of Zeina's restaurant : (10 points) : Sales Beginning inventory Purchases Ending inventory 2019 9,220,000 2,924,500 2,255,750 892,000 2018 7,132,000 2,834,000 2,317,350 857,000 a/ Compute for each year (1) the inventory turnover and (2) the average days to sell the inventory. Inventory turnover formula=Cost of goods sold Average inventory 2019 2018 Cost of goods sold Cost of goods sold Average inventory Average inventory Inventory turnover Inventory turnover Number of days Number of days b/ In which year the company was performing better in managing its inventories. What conclusions concerning the management of the inventory can be drawn from these data
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