Question
The following information was reported for Teal Mountain Equipment Ltd.: 2020 2021 2022 Ending Inventory $153,200 $187,400 $251,000 Cost of Goods Sold $524,000 $550,069 $738,704
The following information was reported for Teal Mountain Equipment Ltd.:
| 2020 | 2021 | 2022 | ||||
| Ending Inventory | $153,200 | $187,400 | $251,000 | |||
| Cost of Goods Sold | $524,000 | $550,069 | $738,704 |
Calculate the inventory turnover and average days for both 2021 and 2022 and comment on the companys liquidity. (Round answers to 2 decimal places, e.g. 52.75.)
| 2021 | 2022 | |||||
| Inventory turnover | times | times | ||||
| Average days | days | days | ||||
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Advanced Accounting
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
11th Edition
978-0132568968, 9780132568968
