Cost of Goods Sold $18,200 Beginning Merchandise Inventory 570 Ending Merchandis
ID: 385628 • Letter: C
Question
Cost of Goods Sold
$18,200
Beginning Merchandise Inventory
570
Ending Merchandise Inventory
470
PrintDone
CedarCedar
Communications reported the following figures in its annual financial statements:
LOADING...
(Click the icon to view the figures.)Compute the rate of inventory turnover and days' sales in inventory for
CedarCedar
Communications. (Round to two decimal places.)
Select the labels and enter the amounts to compute the inventory turnover. (Enter the amount for average inventory to one decimal place, X.X. Round your answer to two decimal places, X.XX.)
/
=
Inventory turnover
/
=
times
Choose from any list or enter any number in the input fields and then click Check Answer.
1
part remaining
Cost of Goods Sold
$18,200
Beginning Merchandise Inventory
570
Ending Merchandise Inventory
470
Explanation / Answer
Cost of goods sold = $18200
Beginning inventory = 570
Ending inventory = 470
Average inventory = (Beginning inventory + ending inventory)/2
= (570 + 470) / 2
= 1040/2
= 520
Inventory turnover = cost of goods sold / Average inventory = 18200/520 = 35 times
Days sale in inventory = Number of days per year / inventory turnover = 365/35 = 10.43 days