Market price of Rourke common stock: $93 94 at December 31, 2016, and $112.00 at
ID: 2587959 • Letter: M
Question
Market price of Rourke common stock: $93 94 at December 31, 2016, and $112.00 at December 31,2015 2. Common shares outstanding: 14,000 during 2016 and 9,000 during 2015 3. All sales on credit 2015 d. Inventory turnover and days' inventory outanding (DIO) (round to the nearest whole day) Begin by selecting the formula and then enter the amounts to calculate the inventory turnover for 2016 and 2015. (Round the ratios to two decimal places) 365 2016 2015 any list or enter any number in the input fields and then click Check Answer parts 1 2 remaining Type here to searchExplanation / Answer
Answer:-
Answer:- 1)-Inventory turnover ratio= Cost of goods sold/Average inventory
2016 = $377000/($295000+284000/2)
=$377000/$289500
=1.30 times
2015= $281000/($284000+$183000/2)
=$281000/$233500
=1.20 times
2)- Day’s sales in inventory:-
= Ending inventory/Cost of goods sold*365 days
2016=($295000/$377000)*365 days
=286 days
2015 =($284000/$281000)*365 days
=369 days