Question

Complete the following table. (Use 365 days in a year. Round the inventory turnover ratio to one decimal place before computing days to sell. Round days to sell to one decimal place.) CGS Inventory Turnover Ratio Days to Sell Case a $ Purchases 160 $ 785 2601 S 780 1,440 1,240 7.2 120 29.4
fill in the table

Answer 1

Answer Inventory Turnover Ratio - Inventory Turno sold to the querage in much time the company entory Turnover Ratio is the ratio of the cost of a he qverage Muenbory held. It is ratio which shows the company requires to add new inventory. It the cost of goods Calculated as follows: Inventory Tyrnoves Ratio Cost of Average Goods sol Inventory. where, Cost of goods sold = opening Inventory + Pyuchares - closing Clostly Inventory + Closing) Inventory Average Inventory : fopening Days to sell Inventory Days to sell Inventory is It is shown it in how to sell Inventory is the ratio of the number of ays during the period divided by the cost of Goods sold of that period. it in how many days a company required to sell the inventory. It is calculated as follows: Days to sell = Number of days during the perlod Inventory I ventory Turnover of that perjoll many days a company Sold - Inventory. In the given question, Gue a Ending Inventory cost of Goods = opening + Purchases a closing Inventory 780 - 160 + 785 - Ending Inventory Ending Toventory = 160 + 785 - 780 [Ending Inventory = 165 ] Inventory Tyrnover Ratio Inventory Tyrnover : cost of Goods sold Katjo Average Inventory 780 C(160 + 166):23 Inventory Tyrnover Ratio : 4.8 times ] Days to sell Inventory 365 days Days to sell Inventory 48 times Day to sell Inventory : 76.04 days /

Care (6) Ending Inventory 1440 Inventory Tymover - Ratio [(200 + Ending Inventory = 2 260 + Ending Inventory - 1440 x 2 Ending Inventory = 400 - 260 Ending Inventory - 140 Pyichques 29.4 days Cost of Good sold = opening Inventory & Purch ques - Closing Inventory 1440 = 260 + Purchases - 140 Percheurs : 1330) Days to sell Inventory Days to sell Inventory = 365 days 7.2 time Days to sale Inventory = 50.7 days que (c) Inventory Turnover Ratio Days to Sale Inventory = 36 365 days Inventory Tyrnover Pano Inventory Inventory Turnover Pano Tyrnover Rytjo : 365 days Inventory Turnover Leto = 12. 4 times Begining Inventory Inventory. Tyrnover Ratio" = (( Begining inventory + 120) 2 ] Begining tavenby 2] -120 Begining Inventary - 79.75 Purchaser Cost of Goods sold = Begining Inventory & Purchase - Closing Inventory 1240 - 79.75 + Rychque - 120 Py.chques = 1280.25 : The table is qi follow TAT T Purchases I COGS I EI Inventory T/o Rato Pays to sell Inventor a 150 I 785 780 165 76.04 260 1320 1440 140 7.2 so.7 79.75 1280.25 1240 I 29.4 1240 4.8 120 124