 |  Financial and Managerial Accounting: The Basis for Business Decisions, 12/e Jan R. Williams,
University of Tennessee
Susan F. Haka,
Michigan State University
Mark S. Bettner,
Bucknell University
Robert F. Meigs
Inventories and the Cost of Goods Sold
Tootsie Roll Exercises| | TOOTSIE ROLL EXERCISE | EXERCISE 8.15 Using the Annual Report LO 7 | | The annual report of Tootsie Roll Industries, Inc. appears in
Appendix A at the end of this textbook. Using figures from the income
statement and balance sheet, answer the following questions: - What was the company's inventory turnover rate for the most recent
year reported?
- Using your answer from part a, what was the average number
of days that merchandise remained in inventory before it was sold?
- Is the company's operating cycle influenced significantly by its accounts
receivable turnover rate? Explain.
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2002 McGraw-Hill Higher Education