Question

A company reported the following data:


Year 1 Year 2 Year 3
Cost of goods sold $347,600 $379,650 $443,900
Average inventory 85,000 91,050 98,350

Required:

Part a. Calculate the company's inventory turnover for each of the three years. (Round your answers to two decimal points.)

Part b. Calculate the days to sell for each of the three years. (Round your answers to one decimal point.)

Part c. Comment on the company's inventory turnover ratio by describing what it measures, how the changes over the past three years can be interpreted, and what may have caused those changes.

Part d. Comment on the company's days to sell by describing what it measures and how the changes over the past three years can be interpreted.

Answer

This answer is hidden. It contains 897 characters.