Question

what is the firm's inventory turnover ratio? (both pictures are for the same problem)

* Question Completion Status: QUESTION 10 Exhibit 4.1 The balance sheet and income statement shown below are for Koski Inc. 2014 Balance Sheet (Millions of S) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $ 2,500 11,500 16,000 $30,000 $20,000 $50,000 $9,500 5,500 7,000 $22,000 stock Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity $15,000 $37,000 $ 2,000 11,000 $13,000 $50,000 Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings bef interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 2014 $87,500 81,813 1,531 $ 4,156 1.375 $ 2,781 1973 $ 1,808 Other data:

Answer 1

Inventory formula Turnover Ratio: - Cost of Goods sold or Net Sales Average Inventory or Inventory First priority is given to cost of Goods sold es calculating Inventory Twenover Ratio. But in this problem cost of Goods sold is not geren, for this ret sales is used to calcula te Inventory Twenover Ratio. And also Enformation regarding Beginning Inventory is not guren, for this Ending Inventory is taken to calculate Inventory Twenover Rated. Now, the formula, Ratio - Net Turnover Sales Inventory Inventory $87.500 $ 16, QUOD - 5.46875 - 5.47