The following is information for Palmer Co.: 2017 2016 2015
Cost of goods sold $643,825 $426,650 $391,300
Ending inventory 97,400 87,750 92,500
Required:
(a) Use the above information to compute inventory turnover for 2016, and its days' sales in inventory at December 31, 2016.
Numerator / Denominator = Ratio
Inventory turnover $426,650 / $90,125 = 4.7 times
Days' sales in inventory ?
(b) Use the above information to compute inventory turnover for 2017, and its days' sales in inventory at December 31, 2017.
Numerator / Denominator = Ratio
Inventory turnover $643,825 / $92,575 = 7.0times
Days' sales in inventory ?

a.

i. 4.7 times

ii. 77.1 days

b

i. 7 times

ii. 52.1 days

Explanation:

Inventory turnover = cost of goods sold / average inventory

average inventory for 2016 = ( 87,750 + 92,500 ) / 2 = $90,125

Inventory turnover $426,650 / $90,125 = 4.7 times

Days' sales in inventory = 365 / inventory turnover = 77.1 days

for 2017

inventory turnover = cost of goods sold / average inventory

average inventory for 2017 = ( 97,400 + 87,750 ) / 2 = $92,575

Inventory turnover $643,825 / $92,575 = 7.0 times

Days' sales in inventory = 365 / inventory turnover = 52.1 days

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

answer; tech (a) is correct;