ACCOUNTING HELP! ACCOUNTING PROBLEM SOLVE The following data were taken from the

Question

ACCOUNTING HELP!

ACCOUNTING PROBLEM SOLVE The following data were taken from the income statements of Cullumber Company 2017 2016 Sales revenue Beginning inventory Purchases Ending inventory $6,434,000 942,400 4,836,000 1,174,000 $6,271,000 840,500 4,691,000 942,400 Compute the inventory turnover for each year. (Round answers to 1 decimal place, e.g 12.5.) 2017 2016 Inventory turnover times times Compute days in inventory for each year. (Round answers to 0 decimal places, e.g. 124. Use 365 days for calculation.) 2017 2016 Days in inventory days days

Explanation / Answer

1.Inventory turnover ratio = cost of goods sold / ((Beginning inventory + Ending inventory) /2)

2.Days sales in inventory = Inventory / cost of sales *365

2017 2016 beginning inventory $       942,400 $     840,500 Add: Purchases $   4,836,000 $ 4,691,000 Less: Ending inventory $ (1,174,000) $   (942,400) Cost of goods sold $   4,604,400 $ 4,589,100

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