Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which company does a better job of selling their inventory faster? Explain your answer with amounts. Company A Days Sales Inventory 375,000/20,000-18.75 365/18.75 19.46

image text in transcribed

Which company does a better job of selling their inventory faster? Explain your answer with amounts. Company A Days Sales Inventory 375,000/20,000-18.75 365/18.75 19.46 19 days Days Sales Receivables 800,000/40,000-20 365/20-18.25 18 days Company B 700,000/ 30,000 23.3 365/23.3 15.67 16 days 800,000/40,000=20 365/20 18.25 18 days Analysis

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

1st edition

978-0133251579, 133251578, 013216230X, 978-0134102313, 134102312, 978-0132162302

More Books

Students also viewed these Accounting questions