Question

Book board - Show Me Calculator Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $963,600 $1,011,800 Beginning inventories 55,400 46,204 Cost of merchandise sold 481,800 562,100 Ending inventories 50,200 55,400 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in Inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Prior Year 1. Inventory turnover 2. Number of days' sales in inventory days days b. The inventory position of the business has . The inventory turnover has while the number of days' sales in inventory has < Previous Next Check My Work Save and Exit Submit Assignment for Grading

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

с D E F G H 1 1 Answer 2 3 4 Current Year 9.1 Prior Year 11.1 5 Inventory Turnover (481800 / ((55400+50200)/2)) (562100/((46204+55400)/2)) 6 7 Number of Days sales in inventory 40 33 8 (9.1/365) (11.1/365) 9 Part b) 10 The inventory position of the business has become adverse. The inventory turnover has decreased, while the number of days sales in inventory has increased 11