OURCES Brief Exercise 1812 The following data are from the i

OURCES Brief Exercise 18-12 The following data are from the income statements of Haskin Company. Sales revenue Beginning inventory Purchases Ending inventory 2017 $6,420,000 940,000 4,340,000 1,020,000 2016 $6,240,000 860,000 4,661,000 940,000 Compute for ea (Round answers to 1 decimal place, e.g. 1.6.) 2017 2016 inventory turnover times times LINK TO TEXT 2017 2016 days days Click if you would like to Show Work for this question: Qus Shasw 807

Solution

Calculate inventory turnover :

Days in sales inventory :

	2017	2016
Cost of goods sold	940000+4340000-1020000 = 4260000	860000+4661000-940000 = 4581000
Average inventory	(940000+1020000/2) = 980000	(860000+940000/2) = 900000
Inventory turnover	4260000/980000 = 4.3 Times	4581000/900000 = 5.1