Chapter 11
Financial Statement Analysis
552
b) In which year does the company have a better performance with respect to the ratios
calculated in part a)? Explain.
AP-8A (
5
)
At the beginning of 2016, Acatela Corp. had inventory of $350,000. During the year, it
purchased $220,000 worth of raw materials and sold $500,000 worth of inventory. Determine
the inventory turnover ratio and the inventory days on hand ratio.
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