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Problem - Financial statement data for two years ending December 31 for Holland Company follow:
20Y4
20Y3
Cost of goods sold
$4,504,500
$3,715,200
Inventories:
Beginning of year
788,000
760,000
End of year
850,000
Required -
1. Determine the inventory turnover for 20Y4 and 20Y3.
2. Determine the number of days' sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place.
3. Are the changes in the inventory turnover and number of days' sales in inventory from 20Y3 to 20Y4 favorable or unfavorable?
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