Question
The following data were extracted from the income statement of Shriver Inc.: Sales Beginning inventories Cost of merchandise sold Ending inventories Current Year $1,036,600
The following data were extracted from the income statement of Shriver Inc.: Sales Beginning inventories Cost of merchandise sold Ending inventories Current Year $1,036,600 Prior Year $1,077,500 71,986 62,724 518,300 65,186 598,600 71,986 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. 1. Inventory turnover Current Year Prior Year 2. Number of days' sales in inventory b. The inventory turnover has days days faster than the inventory, resulting in a l while the number of days' sales in inventory has inventory position. The sales volume has
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