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(Solved): Accounts receivableNUMERATOR:Average total assetsCost of goods soldCurrent assetsCurrent liabilities ...
NUMERATOR:
- Average total assets
- Cost of goods sold
- Current assets
- Current liabilities
- Ending inventory
- Income before interest and income tax
- Net income
- Net sales
DENOMINATOR:
- Beginning inventory
- Cost of goods sold
Current assets - Current liabilities
- Interest expense
- Net income
- Net sales
\begin{tabular}{|l|l|c|c|c|c|} \hline \multicolumn{8}{|c|}{ Days' Sales in Inventory. } \\ \hline Choose Numerator: & & Choose Denominator: & & \multicolumn{2}{|c|}{ Ratio } \\ \hline & 1 & & & \\ \hline & 1 & & & days \\ \hline \end{tabular}
Part A Santana Rey of Business Solutions is evaluating her inventory to determine whether it must be adjusted based on lower of cost or market rules. Business Solutions has three different types of software in its inventory, and the following information is available for each. Required: Compute the lower of cost or market for ending inventory assuming Rey applies the lower of cost or market rule to each product in inventory. Must Rey adjust the reported inventory value? Part B Selected accounts and balances for the three months ended March 31, 2022, for Business Solutions follow. Compute inventory turnover and days' sales in inventory for the three months ended March 31, 2022.