Question

E6-25 (similar to) Serenity reported the following income statement for the year ended December 31, 2019: (Click the loon to view the income statement.) Requirements 1. Compute Serenity's inventory turnover rate for the year. (Round to two decimal places.) 2. Compute Serenity's days' sales in inventory for the year. (Round to two decimal places.) Requirement 1. Compute Serenity's inventory turnover rate for the year. (Round to two decimal places.) Select the labels and enter the amounts to compute the inventory turnover rate. (Round your answer to two decimal places, X.XX.) - Inventory turnover times Choose from any list or enter any number in the input fields and then click Check Answer part I remaining Clear All

Answer 1

Answer with working is given below

Answer may be slightly different due to decimals

Inventory turnover Cost of Goods Sold $60,600 Average Inventory = $12,700 = 4.77 Times Average inventory = ( Opening inventory + Closing inventory)/2 ($11,000+$14,400)/2 2 Day's sales in inventory 365 days 365 Inventory turnover Ratio 4.77 Days' sales in Inventory 76.49 = Days