This Information Is Available for Sheena's Photo Corporation for 2016

question 61

Essay

This information is available for Sheena's Photo Corporation for 2016 and 2017. $$\begin{array} { l r r } &\underline { 2016 } & \underline { 2017 } \\\text { Beginning inventory } & \$ 200,000 & \$ 300,000 \\\text { Ending inventory } & 300,000 & 365,000 \\\text { Cost of goods sold } & 1,200,000 & 1,330,000 \\\text { Sales revenue } & 1,600,000 & 1,900,000\end{array}$$ Instructions
Calculate inventory turnover days in inventory and gross profit rate for Sheena's Photo Corporation for 2016 and 2017. Comment on any trends.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.

Equity Method

The equity method is an accounting technique used to assess the investments in other companies, where the investment is recorded at original cost and adjusted according to the investor’s share of the investee's profit or loss.

Intra-entity Inventory

Transactions involving the exchange of goods between divisions within the same company, often for consolidation or reallocation purposes.