The following information is available from recent financial statements of Competitor A and Competitor B: $$\begin{array} { | l | r | r | }
\hline & \text { Competitor A } & \text { Competitor B} \
\hline \text { Ending inventory } & \$ 6,031 & \$ 4,816 \
\hline \text { Beginning inventory } & 6,162 & 5,044 \
\hline \text { Cost of goods sold } & 21,761 & 27,257 \
\hline \text { Sales } & 29,656 & 36,704 \
\hline
\end{array}$$ Requirement: (a) Calculate the inventory turnover and days in inventory for both companies. (b) What conclusion concerning the management of inventory can be drawn from these data?

Question

The following information is available from recent financial statements of Competitor A and Competitor B: $$\begin{array} { | l | r | r | } 
\hline & \text { Competitor A } & \text { Competitor B} \
\hline \text { Ending inventory } & \$ 6,031 & \$ 4,816 \
\hline \text { Beginning inventory } & 6,162 & 5,044 \
\hline \text { Cost of goods sold } & 21,761 & 27,257 \
\hline \text { Sales } & 29,656 & 36,704 \
\hline
\end{array}$$ Requirement: (a) Calculate the inventory turnover and days in inventory for both companies. (b) What conclusion concerning the management of inventory can be drawn from these data?

Quizplus · Accepted Answer

The Answer of The following information is available from recent financial statements of Competitor A and Competitor B: $$\begin{array} { | l | r | r | } 
\hline & \text { Competitor A } & \text { Competitor B} \
\hline \text { Ending inventory } & \$ 6,031 & \$ 4,816 \
\hline \text { Beginning inventory } & 6,162 & 5,044 \
\hline \text { Cost of goods sold } & 21,761 & 27,257 \
\hline \text { Sales } & 29,656 & 36,704 \
\hline
\end{array}$$ Requirement: (a) Calculate the inventory turnover and days in inventory for both companies. (b) What conclusion concerning the management of inventory can be drawn from these data?

The Following Information Is Available from Recent Financial Statements of Competitor