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Inventory turnover and number of days sales in inventory Financial statement data for years ending...

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Accounting

Inventory turnover and number of days sales in inventory

Financial statement data for years ending December 31 for Tango Company follow:

20Y7 20Y6
Cost of goods sold $3,864,000 $4,001,500
Inventories:
Beginning of year 770,000 740,000
End of year 840,000 770,000

Required

a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place.

20Y7 20Y6
Inventory turnover fill in the blank 1 fill in the blank 2

b. Determine the number of days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place.

20Y7 20Y6
Number of days sales in inventory fill in the blank 3 days fill in the blank 4 days

c. Are the changes in inventory turnover and the number of days sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?

FavorableUnfavorable

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