The following is information for Ryder Co. 2011 2010 2009 Cost of goods sold $ 6
ID: 2356285 • Letter: T
Question
The following is information for Ryder Co. 2011 2010 2009 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending inventory 96,400 86,750 91,500 .................................................................................................................. Use the above information to compute inventory turnover for 2010 and 2011, and its days' sales in inventory at December 31, 2010 and 2011. (Use 365 days a year. Do not round intermediate calculations. Round your answers to 1 decimal place.) 2010 2011 Inventory turnover ........... ............... times Day's sales in inventory ............. ................. daysExplanation / Answer
The following information for Ryder Co. 2011 2010 2009 Cost of goods sold $ 643,825 $ 426,650 $ 391,300 Ending inventory 96,400 86,750 91,500 Use the above information to compute inventory turnover for 2010 and 2011, and its days' sales in inventory at December 31, 2010 and 2011. (Do not round intermediate calculations. Round your answers to 1 decimal place. Use 365 days a year.) COGS / Avg. Inventory = Inventory turnover times 2011 (96,400 + 86,750) / 2 = 91,575 Avg. Inventory 643,825 / 91,575 = 7.0 times 2010 (86,750 + 91,500) / 2 = 89,125 Avg. Inventory 426,650 / 89,125 = 4.8 times 365 / Inventory turnover times = Day's sales in inventory days 2011 365 / 7.0 = 52.1 days 2010 365 / 4.8 = 76.0 days
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