Question
The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy
The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products:
Tomato Happy Times
Cost of merchandise sold $6,916,000 $3,266,550
Inventory, end of year 129,000 160,000
Inventory, beginning of the year 79,000 197,000
a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place.
Tomato
Happy Times
b. Would you expect Happy Timess inventory turnover to be higher or lower than Tomatos?
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Financial Accounting An Introduction to Concepts, Methods and Uses
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
14th edition
978-1111823450, 1-133-36617-1 , 1111823456, 978-1-133-3661, 978-1133591023
