Question

Bell Company has provided the following figures as of December 31, Year 2: sales of $600,000, cost of goods sold of $320,000, net income of $120,000, and ending inventory of $64,000. Answer the following questions by entering your answer in the space provided: 1. Calculate Bell's inventory turnover (Sample Answer Format: 8) 2. Calculate Bell's average number of days to sell inventory (Sample Answer Format: 56)

          Bell Company has provided the following figures as of December 31, Year 2: sales of $600,000,
cost of goods sold of $320,000, net income of $120,000, and ending inventory of $64,000.
Answer the following questions by entering your answer in the space provided:
1. Calculate Bell's inventory turnover (Sample Answer Format: 8)
2. Calculate Bell's average number of days to sell inventory (Sample Answer
Format: 56)

Bell Company has provided the following figures as of December 31, Year 2: sales of 600,000,
cost of goods sold of320,000, net income of 120,000, and ending inventory of64,000.
Answer the following questions by entering your answer in the space provided:
1. Calculate Bell's inventory turnover (Sample Answer Format: 8)
2. Calculate Bell's average number of days to sell inventory (Sample Answer
Format: 56)

Added by Larry C.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Ian Sharkey

Step 1

To calculate Bell's inventory turnover, we need to divide the cost of goods sold by the average inventory. The formula for inventory turnover is: Inventory Turnover = Cost of Goods Sold / Average Inventory Given that the cost of goods sold is $320,000 and the Show more…

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Bell Company has provided the following figures as of December 31, Year 2: sales of $600,000, cost of goods sold of $320,000, net income of $120,000, and ending inventory of $64,000. Answer the following questions by entering your answer in the space provided: 1. Calculate Bell's inventory turnover (Sample Answer Format: 8). 2. Calculate Bell's average number of days to sell inventory (Sample Answer Format: 56).