QUESTION 22.

PART 1

PART 2.

The Stationery Company purchased merchandise on account from a supplier for $14,500, terms 2/10, n/30. The Stationery Company returned merchandise with an invoice amount of $3,500 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 2017 2016 Cost of goods sold $3,864,000 $4,001,500 Inventories: Beginning of year 770,000 740,000 End of year 840,000 770,000 Required a. Determine the inventory turnover for 2017 and 20Y6. Round to one decimal place. 2017 2016 Inventory turnover b. Determine the number of days' sales in inventory for 2017 and 2016. Use 365 days and round to one decimal place. 2017 2016 Number of days' sales in inventory days days C. Are the changes in inventory turnover and the number of days' sales in inventory from 2016 to 2017 favorable or unfavorable