The following data were taken from the income statements of Mydorf Company. _____________________________2019 2018 Sales revenue..$6,420,000$6,240,000 Beginning

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The following data were taken from the income statements of Mydorf Company.

_____________________________2019                          2018

Sales revenue…………………..$6,420,000……$6,240,000

Beginning inventory………………960,000……….840,000

Purchases………………………..4,840,000…......4,661,000

Ending inventory………………..1,020,000……….960,000

(a) Compute for each year

(1) The inventory turnover and 

(2) Days in inventory.

(b) What conclusions concerning the management of the inventory can be drawn from these data?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Financial Accounting

ISBN: 978-1119305736

10th edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

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