Based on the Following Information Compute
(A) Inventory Turnover

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? $\begin{array}{lrr}\text { Item }&\text { Prior Year } & \text { Current Year } \\\text { Cost of merchandise sold } & \$ 172,900 & \$ 215,000 \\\text { Inventory } & 18,000 & 12,000\end{array}$