A company reported the following data:
$\begin{array}{|l|r|r|r|}
\hline &{\text { Year 1 }} &{\text { Year 2 }} &{\text { Year 3 }} \
\hline \text { Cost of goods sold } & \$ 238,000 & \$ 375,000 & \$ 495,000 \
\hline \text { Ending inventory } & 120,000 & 150,000 & 180,000 \
\hline
\end{array}$ Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

Question

A company reported the following data:
 $\begin{array}{|l|r|r|r|}
\hline &{\text { Year 1 }} &{\text { Year 2 }} &{\text { Year 3 }} \
\hline \text { Cost of goods sold } & \$ 238,000 & \$ 375,000 & \$ 495,000 \
\hline \text { Ending inventory } & 120,000 & 150,000 & 180,000 \
\hline
\end{array}$ Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

Quizplus · Accepted Answer

The Answer of A company reported the following data:
 $\begin{array}{|l|r|r|r|}
\hline &{\text { Year 1 }} &{\text { Year 2 }} &{\text { Year 3 }} \
\hline \text { Cost of goods sold } & \$ 238,000 & \$ 375,000 & \$ 495,000 \
\hline \text { Ending inventory } & 120,000 & 150,000 & 180,000 \
\hline
\end{array}$ Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

A Company Reported the Following Data Required: 1

A Company Reported the Following Data Required:
1