Use the Following Information That Was Obtained from the 2018\[\text { A) Compute the number of days' sales in inventory for each company for } 2018 \text {. }\]

The Answer of Use the Following Information That Was Obtained from the 2018\[\text { A) Compute the number of days' sales in inventory for each company for } 2018 \text {. }\]

Use the Following Information That Was Obtained from the 2018\[\text { A) Compute the number of days' sales in inventory for each company for } 2018 \text {. }\]

The Answer of Use the Following Information That Was Obtained from the 2018\[\text { A) Compute the number of days' sales in inventory for each company for } 2018 \text {. }\]

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Use the Following Information That Was Obtained from the 2018

question 198

Essay

Use the following information that was obtained from the 2018 and 2017 financial statements of Pacific Company,River Corporation,and Ocean Company to answer the questions that follow.
Required
Compare the three companies and answer the following:
$\begin{array}{lrrrr}\text { (in millions) } && \underline{\text { Pacific }} & \underline{\text { River }}& \underline{\text { Ocean }}\\\text { Accounts receivable } & \text { December } 31,2018 & \$ 33,000 & \$ 22,000 & \$ 41,500 \\& \text { December } 31,2017 & 30,000 & 12,800 & 42,600 \\\text { Inventory } & \text { December } 31,2018 & 22,600 & 12,600 & 54,200\\& \text { December 31,2017 } & 23,900 & 32,800 & 44,000 \\\text { Net sales (Credit) } & 2018 & 620,000 & 320,000 & 510,000\\& 2017 & 610,000 & 310,000 & 760,000 \\\text { Cost of goods sold } & 2018 & 211,000 & 406,000 & 311,000 \\& 2017 & 156,000 & 200,000 & 310,000\end{array}$
$\text { A) Compute the number of days' sales in inventory for each company for } 2018 \text {. }$
B) Which company appears to have the best liquidity position based solely on the inventory analysis? Explain. $\text { C) What information is provided to users with your calculations in part (A)? }$

Definitions:

Constants

Values that do not change, remaining the same in various contexts or equations.

Indifference Curves

A graphical representation showing different combinations of two goods that provide equal satisfaction and utility to a consumer.

Bundle

A collection of goods or services packaged together, often sold for a single price.

Constants

Fixed values in algebraic expressions or equations that don't change, or in scientific investigations, variables that remain the same throughout the experiment.