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Problem III - LO 4 - The following data are from the income statements of Burner Queen's restaurant: (10 points): Sales Beginning inventory Purchases Ending
Problem III - LO 4 - The following data are from the income statements of Burner Queen's restaurant: (10 points): Sales Beginning inventory Purchases Ending inventory 2020 8.222.000 1.927,500 1.246.750 792.000 2019 7.157.000 2.732.000 2.240.350 922.000 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 2020 2019 Cost of goods sold Cost of goods sold Average inventory Average inventory Inventory turnover Inventory turnover 4 of 7 Number of days Number of days Average inventory Average inventory Inventory turnover Inventory turnover Number of days Number of days w 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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