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A Company Reported the Following Data Required:
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question 45

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A company reported the following data:
 Year 1  Year 2  Year 3  Cost of goods sold $238,000$375,000$495,000 Ending inventory 120,000150,000180,000\begin{array}{|l|r|r|r|}\hline &{\text { Year 1 }} &{\text { Year 2 }} &{\text { Year 3 }} \\\hline \text { Cost of goods sold } & \$ 238,000 & \$ 375,000 & \$ 495,000 \\\hline \text { Ending inventory } & 120,000 & 150,000 & 180,000 \\\hline\end{array} Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

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Definitions:

Carbon Atoms

The fundamental building blocks of organic molecules, capable of forming four covalent bonds.

Molecule

The smallest unit of a chemical compound that can exist, consisting of two or more atoms bonded together.

Condensed Structure

A representation of a molecular structure that omits certain atoms or groups, assuming the reader will infer their presence to simplify depictions of organic compounds.

Structural Formula

A graphical representation of a molecular structure, showing how atoms are arranged and bonded together within a molecule.

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