Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 3

A Inventory turnover and number of days' sales in inventory
Financial statement data for years ending December 31 for Holland Company follows:

a. Determine the inventory turnover for 2016 and 2015.
b. Determine the number of days' sales in inventory for 2016 and 2015. Use 365 days and round to one decimal place.
c. Does the change in inventory turnover and the number of days' sales in inventory from 2015 to 2016 indicate a favorable or an unfavorable trend
B Inventory turnover and number of days' sales in inventory
Financial statement data for years ending December 31 for Tango Company follows:

a. Determine the inventory turnover for 2016 and 2015.
b. Determine the number of days' sales in inventory for 2016 and 2015. Use 365 days and round to one decimal place.
c. Does the change in inventory turnover and the number of days' sales in inventory from 2015 to 2016 indicate a favorable or an unfavorable trend