Based on the Following Information Compute

question 69

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?

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Definitions:

Consolidated Retained Earnings

The cumulative amount of earnings of a corporation and its subsidiaries after dividends have been paid, as reported in consolidated financial statements.

Retained Earnings

The portion of net profits left in the company after dividends have been paid to shareholders.

Voting Shares

Shares that give the shareholder the right to vote on matters of corporate policy and the election of board members.

Purchase Method

A method of accounting for an acquisition where the purchaser's financial statements include the assets and liabilities of the acquired company at their fair values.