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:
| Line Item Description | 20Y7 | 20Y6 |
|---|---|---|
| Cost of goods sold | $3,744,170 | $4,119,390 |
| Inventories: | ||
| Beginning of year | 781,100 | 744,600 |
| End of year | 846,800 | 781,100 |
a. Determine the inventory turnover for 20Y7 and 20Y6. Round your answers to one decimal place.
| Line Item Description | 20Y7 | 20Y6 |
|---|---|---|
| Inventory turnover | fill in the blank 1 of 2 | fill in the blank 2 of 2 |
b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days a year. Round your answers to one decimal place.
| Line Item Description | 20Y7 | 20Y6 |
|---|---|---|
| Number of days sales in inventory | fill in the blank 1 of 2 days | fill in the blank 2 of 2 days |
c. Are the changes in inventory turnover and the number of days sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?
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