Question

The following data were taken from the income statements of Mydorf Company. Sales revenue Beginning inventory Purchases 2020 $6,450,000 915,000 4,328,250 1,040,000 2019 $6,230,000 900,000 4,643,250 915,000 Ending inventory Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Inventory turnover times times LINK TO TEXT Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Days in inventory days days Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer

• Requirements asked

	2020		2019
Inventory Turnover	4.3	times	5.1	times
Days in Inventory	84.9	days	71.6	days

• Workings

		2020	2019
A	Beginning Inventory	$915,000	$900,000
B	Purchases	$4,328,250	$4,643,250
C	Ending Inventory	$1,040,000	$915,000
D = A+B - C	Cost of Goods Sold	$4,203,250	$4,628,250
E = (A+C) / 2	Average Inventory	$977,500	$907,500
F = D/E	Inventory Turnover	4.3	5.1
G = 365 days / F	Days in Inventory	84.9	71.6