Question

2017 2016 24 2016 Cash and Accounts 2017 549 20169 22561 Net Cost of good Sold Depreciation EBIT interest expense Tax (20) Net income 2.236 2235 2.607 3.790 1.25 2.657 126 422 1.687 152 229 7,095 2.913 wentores Total current 2.575 6624 Total assets 9.200 Liabilities and Owners' Equity Accounts payable Short-term notes 184 Total current abilities Long-term debt 1,046 Common stock 1,336 Retained earnings 5366 Total liabilities and owners' equity 9,200 1,588 5.257 Financial statements for SW Inc are presented above. Calculate the most recent days' sales in inventory ratio and, if the industry average 16.27. how does it compare with their overall competition? 20.33 suggesting SW incsells through their inventory slower than the industry 20.33 suggesting SW Inc sells through their inventory faster than the industry 17.68 suggesting SW Inc sells through their inventory faster than the industry 23.38 suggesting SW Inc sells through their inventor than the industry 23.38 suggesting SW Inc sells through their invento than the industry Maol Dr

Answer 1

Days sales in inventory in 2017 = 365/COGS * Inventory = 365/22563 * 1257 = 20.33 days

As Days sales (20.33) > Industry average, it sells inventory slower than the industry