12/31/10 amount 12/31/11 amount
Cost of Merchandise sold 172,900 160,600
Inventory 18,000 12,000
Based on the information above, compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days’ sales in inventory for 2011. Use a 365 day year
If required, round your answers to two decimal places.
| a. Inventory turnover | ||
| b. Average daily cost of merchandise sold | ||
| c. Number of days’ sales in inventory |
d. If an inventory turnover of 12 is average for the industry, how is this company doing?