Solution-Compute for the inventory turnover ratio

Compute for the inventory turnover ratio

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Reference no: EM13526485

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

	2012	2011
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

Compute for each year (a) the inventory turnover ratio and (b) days in inventory. What conclusions concerning the management of the inventory can be drawn from these data?

Reference no: EM13526485

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Compute for the inventory turnover ratio

Reference no: EM13526485

Reference no: EM13526485

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