The Following Data Were Taken from Castle, Inc Determine the Inventory Turnover Ratio and the Days' Sales in Cost

question 25

Essay

The following data were taken from Castle, Inc. $\begin{array}{lr}\text { Cost of merchandise sold } & \$ 894,000 \\\text { Inventory, end of year } & 78,000 \\\text { Inventory, beginning of the year } & 92,000\end{array}$ Determine the inventory turnover ratio and the days' sales in inventory for Castle Inc. Round to two decimal places.

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Definitions:

Approved Vendor

A supplier that has been vetted and authorized by a company to provide goods or services.

Receiving Report

A document that records the details of goods received by a company, ensuring the quantities and quality match the purchase order.

Initial Record

The first entry or documentation of a transaction or event in the accounting records.

Retail Inventory Method

An accounting method used to estimate the value of a store's merchandise by converting retail prices to cost prices.