The Following Data Are Taken from the Financial Statements (A)Determine for Each Year (1) the Invent Ory Tumover and

question 40

Essay

The following data are taken from the financial statements:
$\begin{array}{lll}\text { Preceding } & \text { Current } \\\text { Year } & \text { Year }\\\$ 4,056,000 & \$ 3,592,000 & \text { Net sales } \\2,656,000 & 2,092,000 & \text { Cost of goods sold } \\328,000 & 332,000 & \text { Average monthly inventory } \\347,000 & 372,000 & \text { Inventor, end of year }\end{array}$
(a)Determine for each year (1) the invent ory tumover and (2) the number of days s ales in inventary.
(b)Comment on the favorable and unfavor able trends revealed by the data.

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Definitions:

Arithmetic Average

The sum of a set of numerical values divided by the number of values in the set, commonly used as a measure of central tendency.

Distribution of Scores

The spread of data points in a dataset, often visualized through graphs or statistical measures to understand variability.

Mean

The arithmetic average of a distribution, obtained by adding the scores and then dividing by the number of scores.

Companionate Love

A form of love characterized by a deep bond, affection, and commitment typically found in long-term relationships.