# AE9-21 - and(b the average days to sell inventory for 2007...

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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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