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XYZ Corporation purchased inventory on credit for $50,000. The inventory turnover ratio for the year was 5 times. Cost of goods sold was $200,000. Requirements:
XYZ Corporation purchased inventory on credit for $50,000. The inventory turnover ratio for the year was 5 times. Cost of goods sold was $200,000. Requirements: a. Record the purchase of inventory by XYZ Corporation. b. Calculate the average inventory during the year. c. Determine the cost of goods sold ratio. d. Analyze the efficiency of inventory management. e. Discuss potential strategies to improve inventory turnover.
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