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 InventoryThe 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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Related Book For
Financial Accounting
ISBN: 978-1119305736
10th edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
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