Chapter 6 Accounting for Invent
p6-5A. Inventory Turnover and Days’ Sales in Inventory The Southern Corporation installed a new in- LO
ventory management system at the beginning of 2018. Shown below are data from the company’s
accounting records as reported by the new system:
Sales revenue. . .
Cost of goods sold .
Ending inventory . . ..
Calculate the company’s (a) inventory turnover (round to three decimal places) and (b) days’ sales in
inventory for 2018 and 2019. Comment on your results.Financial Accounting