AE9-21 - and (b) the average days to sell inventory for...

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AE9-21 Correct. (Analysis of Inventories) The financial statements of Duncan Mills, Inc's. 2007 Annual Report disclose the following information. (in millions) May 30, 2007 May 25, 2006 May 26, 2005 Inventories $1,376 $1,324 $1,424 Fiscal Year 2007 2006 Sales $12,864 $12,652 Cost of goods sold 8,806 8,366 Net income 1,741 1,372 Compute Duncan Mills's (a) inventory turnover (Round to 2 decimal places, e.g. 12.25.)
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Unformatted text preview: and (b) the average days to sell inventory for 2007 and 2006 (Use rounded amounts from (a) for these calculations. Round final answer to 1 decimal place, e.g. 22.1.) (a) Inventory turnover: 2007 2006 $8,806 = 6.52 times $8,366 = 6.09 times ($1,376 + $1,324)/2 ($1,324 + $1,424)/2 (b) Average days to sell inventory: 2007 2006 365 6.52 = 56.0 days 365 6.09 = 59.9 days...
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