If Inventory Turnover Is 10 Times, and the Average Inventory

question 87

Short Answer

If inventory turnover is 10 times, and the average inventory was $400,000, the cost of goods sold during the year was $______________ and the days in inventory was ______________ days.

---

Definitions:

Net Income

The amount of profit left after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from total revenues.

Additional Investment

Funds invested into a business by its owners or shareholders over and above the initial investment.

Income Statement

A financial statement that reports a company's revenues, expenses, and profits over a specific period, showing the financial performance of the business.

Statement Of Owner's Equity

A financial document showing changes in the equity of a company over a certain period due to various business activities, such as earnings and withdrawals.