Solution-Determine for each year the inventory turnover

Determine for each year the inventory turnover

Reference no: EM132684300

Problem - Inventory analysis - The following data were extracted from the income statement of Hestia Systems Inc.:

	Current Year	Preceding Year
Sales	$2,443,600	$2,592,000
Beginning inventories	158,000	130,000
Cost of goods sold	1,221,800	1,440,000
Ending inventories	140,000	158,000

Required -

a1. Determine for each year the inventory turnover. Round to the nearest dollar and one decimal place.

a2. Determine for each year the number of days' sales in inventory. Round to the nearest dollar and one decimal place.

b. What conclusions can be drawn from these data concerning the inventories?

Reference no: EM132684300

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Determine for each year the inventory turnover

Reference no: EM132684300

Reference no: EM132684300

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