Question
XYZ Company reported net credit sales of $500,000. The COGS were $300,000. Beginning inventory was $40,000 and ending inventory was $60,000. How many days did
XYZ Company reported net credit sales of $500,000. The COGS were $300,000. Beginning inventory was $40,000 and ending inventory was $60,000. How many days did it take XYZ Company to convert inventory into cash? Assume that the industry average is 75 days. Is XYZ underperforming or overperforming compared to the industry? Provide advice to XYZ Company.
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Fundamentals Of Auditing
Authors: Basu
1st Edition
8131728854, 978-8131728857
