Inventory Turnover and Days' Sales in InventoryFinancial statement data for years ending December 31 for Holland Company follows: 20Y4 20Y3 Cost of merchandise sold $4,504,500 $3,715,200 Inventories: Beginning of year 788,000 760,000 End of year 850,000 788,000 a.Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Y3 b.Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 20Y4 days 20Y3 days c.Does the change in inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?Unfavorable

Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Holland Company follows: 20Y4 20Y3 Cost of merchandise sold $4,504,500 $3,715,200 Inventories:...

Inventory Turnover and Days' Sales in Inventory

Financial statement data for years ending December 31 for Holland Company follows:

	20Y4	20Y3
Cost of merchandise sold	$4,504,500		$3,715,200
Inventories:
Beginning of year	788,000		760,000
End of year	850,000			788,000

a.Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.

	Inventory Turnover
20Y4
20Y3

b.Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place.

	Days' Sales in Inventory
20Y4	days
20Y3	days

c.Does the change in inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
Unfavorable

Jun 09, 2022

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Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Holland Company follows: 20Y4 20Y3 Cost of merchandise sold $4,504,500 $3,715,200 Inventories:...

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