Based on the Following Information Compute
(A) Inventory Turnover

question 98

Essay

Based on the following information compute
(a) inventory turnover,
(b) average daily cost of merchandise sold, and
(c) days' sales in inventory for the current year. Use a 365-day year.
(d) If an inventory turnover of 12 is average for the industry, how is this company doing? $\begin{array}{lrr}\text { Item }&\text { Prior Year } & \text { Current Year } \\\text { Cost of merchandise sold } & \$ 172,900 & \$ 215,000 \\\text { Inventory } & 18,000 & 12,000\end{array}$

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.