The following data were extracted from the income statement of
Martin Solutions, Inc.:
Year 2
Year 1
Sales
$1,139,600
$1,192,320
Beginning inventory
80,000
64,000
Cost...
70.2K
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Accounting
The following data were extracted from the income statement ofMartin Solutions, Inc.:
Year 2
Year 1
Sales
$1,139,600
$1,192,320
Beginning inventory
80,000
64,000
Cost of goods sold
500,800
606,000
Ending inventory
72,000
80,000
Required:
Assume a 365-day year.
Determine for each year:
a. Inventory turnover. Round your answers to one decimalplace.
Year 2
Year 1
b. Number of days' sales in inventory. Round your final answerto one decimal place.
Year 2
days
Year 1
days
Answer & Explanation
Solved by verified expert
3.9 Ratings (615 Votes)
a Inventory Turnover Year 2 70 times Year 1 76 times b Days sales in Inventory Year 2 525 Days Year 1 482 Days a Inventory Turnover
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