Question
Shaffer Company has an ending inventory of $360,500 and a COGS for the year of $2,100,000. It has used LIFO inventory for a number of
Shaffer Company has an ending inventory of $360,500 and a COGS for the year of $2,100,000. It has used LIFO inventory for a number of years because of persistent inflation.
1. Compute the days sales in inventory.
2. Is J. Shaffer Companys days sale in inventory as computed realistic in comparison with the actual days sales in inventory?
3. Would the days sales in inventory computed for J. Shaffer Company be a helpful guide?
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Sound Investing, Chapter 6 - Valuation Of Assets And Liabilities
Authors: Kate Mooney
1st Edition
0071719288, 9780071719285
