Question

Text: Inventory Analysis The following data were extracted from the income statement of Brecca Systems Inc.: Current Year Preceding Year Sales $9,700,000 $7,175,000 Beginning inventories $420,000 $400,000 Cost of goods sold $5,820,000 $4,305,000 Ending inventories $550,000 $420,000 a. (1). Determine for each year the inventory turnover. Round answers to one decimal place. Current year fill in the blank 1 Preceding year fill in the blank 2 (2). Determine for each year the days' sales in inventory. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Current year fill in the blank 3 days Preceding year fill in the blank 4 days b. What conclusions can be drawn from these data concerning the inventories?

          Text: Inventory Analysis
The following data were extracted from the income statement of Brecca Systems Inc.:

Current Year
Preceding Year
Sales
$9,700,000
$7,175,000
Beginning inventories
$420,000
$400,000
Cost of goods sold
$5,820,000
$4,305,000
Ending inventories
$550,000
$420,000

a. (1). Determine for each year the inventory turnover. Round answers to one decimal place.
Current year
fill in the blank 1
Preceding year
fill in the blank 2

(2). Determine for each year the days' sales in inventory. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place.
Current year
fill in the blank 3 days
Preceding year
fill in the blank 4 days

b. What conclusions can be drawn from these data concerning the inventories?

Added by Montserrat D.

Question

Please give Ace some feedback