Business, 07.06.2021 21:10 Ruthsybel9754
Perez Corporation has the following financial data for the years 20X1 and 20X2:
20X1 20X2
Sales $8,000,000 $10,000,000
Cost of goods sold 6,000,000 9,000,000
Inventory 800,000 1,000,000
Required:
a. Compute the inventory turnover for each year using the formula Sales/Inventory.
b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year.
Answers: 3
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Perez Corporation has the following financial data for the years 20X1 and 20X2:
20X1 20X2
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