Homework Answers
1) Average Inventory = (Beginning inventory + Ending inventory) / 2
Year 2020: (940,000 + 1,020,000) / 2 = 980,000
Year 2021: (860,000 + 940,000) / 2 = 900,000
COGS = Beginning Inventory + Purchases -Ending Inventory
Year 2020: (940,000 + 4,340,000 - 1,020,000) = 4,260,000
Year 2021: (860,000 + 4,661,000 - 940,000) = 4,581,000
Inventory Turnover = COGS /Average Inventory
Year 2020: 4,260,000/ 980,000 = 4.3 times
Year 2021: 4,581,000 / 900,000 = 5.0 times
Days in inventory = 365/ Inventory Turnover
Year 2020: 365/4.3 = 85 days
Year 2021: 365/5.0 = 73 days
2) In 2021 inventory turnover is approximately 16.27% [(5.0 - 4.3) ÷ 4.3] higher than in year 2020. In addition, in 2021 days in inventory is 14.12% [(85-73) ÷ 85] lower. In 2020 the company prefers to maintain as high an inventory turnover as possible. Thus can conclude that Year 2021 manages inventory more effectively than Year 2019
Add Answer to:
CALCULATOR FUL Brief Exercise 18-12 b (Essay) The following data were taken from the income statements...
Brief Exercise 18-12 a1-a2 The following data were taken from the income statements of Mydorf Company....
Brief Exercise 18-12 a1-a2 The following data were taken from the income statements of Mydorf Company. 2020 2019 Sales revenue $6,470,000 $6,220,000 Beginning inventory 920,000 850,000 Purchases 4,422,000 4,583,500 Ending inventory 1,100,000 920,000 Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Inventory turnover times times LINK TO TEXT Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2020 2019...
1.2. 3. 4. 4 homework questions, Help ! Brief Exercise 18-11 al-a2 The following data are...
1.2.
3.
4.
4 homework questions, Help !
Brief Exercise 18-11 al-a2 The following data are taken from the financial statements of Colby Company. 2019 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 2020 $555,000 4,033,250 $550,000 3,065,250 Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $455,000. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Accounts receivable turnover times times LINK...
The following data were taken from the income statements of Mydorf Company. Sales revenue Beginning inventory...
The following data were taken from the income statements of Mydorf Company. Sales revenue Beginning inventory Purchases 2020 $6,450,000 915,000 4,328,250 1,040,000 2019 $6,230,000 900,000 4,643,250 915,000 Ending inventory Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Inventory turnover times times LINK TO TEXT Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Days in inventory days...
Exercise 6-12 b (Essay) The following information is available for Zoe's Activewear Inc. for three recent fiscal ye...
Exercise 6-12 b (Essay) The following information is available for Zoe's Activewear Inc. for three recent fiscal years. 2022 2021 2020 Inventory $553,000 $568,000 $332,000 Net sales 1,948,000 1,725,000 1,311,000 Cost of goods sold 1,552,000 1,288,000 947,000 (b) Based on inventory turnover, days in inventory, and gross profit rate for 2022 and 2021, did Zoe's liquidity and profitability improve or deteriorate in 20227 Click if you would like to Show Work for this question: Open Show Work Police 1 R...
Brief Exercise 13-12 a1-a2 (Part Level Submission) The following data were taken from the income statements...
Brief Exercise 13-12 a1-a2 (Part Level Submission) The following data were taken from the income statements of Crane Company. 2020 2019 Sales revenue Beginning inventory Purchases Ending inventory $6,385,000 934,000 4,646,200 1,040,000 $6,188,000 854,000 4,997,000 934,000 (a1) Compute the inventory turnover for each year. (Round answers to 1 decimal place, e.g. 12.5.) 2020 2019 Inventory turnover times times Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2020...
WS edugen.wileyplus.com CALCULATOR FULL SCREEN PRINTER VERSION Brief Exercise 18-11 a1-a2 The following data are taken...
WS edugen.wileyplus.com CALCULATOR FULL SCREEN PRINTER VERSION Brief Exercise 18-11 a1-a2 The following data are taken from the financial statements of Colby Company Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, 1/45 2020 $500,000 4,116,000 2019 $480,000 3,182,500 Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $470,000. (Round answers to 1 decimal place ... 1.6. 2020 2019 Accounts receivable turnover times LINK TO TEXT...
The following data were taken from the income statements of Mydorf Company. 2020 2019 Sales revenue...
The following data were taken from the income statements of Mydorf Company. 2020 2019 Sales revenue $6,370,000 $6,170,000 Beginning inventory 915,000 865,000 Purchases 4,359,750 4,678,000 Ending inventory 1,050,000 915,000 Collapse question part (a1) Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Inventory turnover times times
The comparative statements of Crane Company are presented here: Crane Company Income Statements For the Years...
The comparative statements of Crane Company are presented here: Crane Company Income Statements For the Years Ended December 31 2020 Net sales $1,898,740 Cost of goods sold 1,066,740 Gross profit 832,000 Selling and administrative expenses 508,200 Income from operations 323,800 Other expenses and losses Interest expense 23,700 Income before income taxes 300,100 Income tax expense 93,700 Net income $206,400 2019 $1,758,700 1,014,200 744,500 487,200 257,300 21,700 235,600 74,700 $160,900 Crane Company Balance Sheets December 31 Assets 2020 2019 Current assets...
*Problem 12-16 (Part Level Submission) The following information in $ millions) was taken from the recent...
*Problem 12-16 (Part Level Submission) The following information in $ millions) was taken from the recent annual reports of two companies. Cost of goods sold Average inventory Company A Company B $26,541 $25,377 $2,514 $4,903 *(a1) Your answer is correct. Calculate each company's inventory turnover. (Round answers to 1 decimal place, e.g. 2.5.) Company A Company B Inventory turnover 710.6 times 75.2 times Attempts: 1 of 2 used *(a2) Calculate each company's average days to sell inventory. (Round answers to...
CALCULATOR PRINTER VERSION BACK NEXT Exercise 18-10 Suppose selected comparative statement data for the giant bookseller...
CALCULATOR PRINTER VERSION BACK NEXT Exercise 18-10 Suppose selected comparative statement data for the giant bookseller Barnes Noble are presented here. All balance sheet data are of the end of the fiscal year in million). 2020 $5,600 3,696 $5,500 3,833 Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 1,206 3,140 117 1,229 3,860 1,005 Compute the following ratios for 2020. (Round asset turnover to 2 decim (a) Pront margin (b) Asset...
1.2.
3.
4.
4 homework questions, Help !
Brief Exercise 18-11 al-a2 The following data are taken from the financial statements of Colby Company. 2019 Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, n/45 2020 $555,000 4,033,250 $550,000 3,065,250 Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $455,000. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Accounts receivable turnover times times LINK...
The following data were taken from the income statements of Mydorf Company. Sales revenue Beginning inventory Purchases 2020 $6,450,000 915,000 4,328,250 1,040,000 2019 $6,230,000 900,000 4,643,250 915,000 Ending inventory Compute for each year the inventory turnover. (Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Inventory turnover times times LINK TO TEXT Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2020 2019 Days in inventory days...
Exercise 6-12 b (Essay) The following information is available for Zoe's Activewear Inc. for three recent fiscal years. 2022 2021 2020 Inventory $553,000 $568,000 $332,000 Net sales 1,948,000 1,725,000 1,311,000 Cost of goods sold 1,552,000 1,288,000 947,000 (b) Based on inventory turnover, days in inventory, and gross profit rate for 2022 and 2021, did Zoe's liquidity and profitability improve or deteriorate in 20227 Click if you would like to Show Work for this question: Open Show Work Police 1 R...
Brief Exercise 13-12 a1-a2 (Part Level Submission) The following data were taken from the income statements of Crane Company. 2020 2019 Sales revenue Beginning inventory Purchases Ending inventory $6,385,000 934,000 4,646,200 1,040,000 $6,188,000 854,000 4,997,000 934,000 (a1) Compute the inventory turnover for each year. (Round answers to 1 decimal place, e.g. 12.5.) 2020 2019 Inventory turnover times times Compute for each year the days in inventory. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 1.6.) 2020...
WS edugen.wileyplus.com CALCULATOR FULL SCREEN PRINTER VERSION Brief Exercise 18-11 a1-a2 The following data are taken from the financial statements of Colby Company Accounts receivable (net), end of year Net sales on account Terms for all sales are 1/10, 1/45 2020 $500,000 4,116,000 2019 $480,000 3,182,500 Compute for each year the accounts receivable turnover. At the end of 2018, accounts receivable was $470,000. (Round answers to 1 decimal place ... 1.6. 2020 2019 Accounts receivable turnover times LINK TO TEXT...
The comparative statements of Crane Company are presented here: Crane Company Income Statements For the Years Ended December 31 2020 Net sales $1,898,740 Cost of goods sold 1,066,740 Gross profit 832,000 Selling and administrative expenses 508,200 Income from operations 323,800 Other expenses and losses Interest expense 23,700 Income before income taxes 300,100 Income tax expense 93,700 Net income $206,400 2019 $1,758,700 1,014,200 744,500 487,200 257,300 21,700 235,600 74,700 $160,900 Crane Company Balance Sheets December 31 Assets 2020 2019 Current assets...
*Problem 12-16 (Part Level Submission) The following information in $ millions) was taken from the recent annual reports of two companies. Cost of goods sold Average inventory Company A Company B $26,541 $25,377 $2,514 $4,903 *(a1) Your answer is correct. Calculate each company's inventory turnover. (Round answers to 1 decimal place, e.g. 2.5.) Company A Company B Inventory turnover 710.6 times 75.2 times Attempts: 1 of 2 used *(a2) Calculate each company's average days to sell inventory. (Round answers to...
CALCULATOR PRINTER VERSION BACK NEXT Exercise 18-10 Suppose selected comparative statement data for the giant bookseller Barnes Noble are presented here. All balance sheet data are of the end of the fiscal year in million). 2020 $5,600 3,696 $5,500 3,833 Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 1,206 3,140 117 1,229 3,860 1,005 Compute the following ratios for 2020. (Round asset turnover to 2 decim (a) Pront margin (b) Asset...
Most questions answered within 3 hours.
-
These surveys collect information in low- and
middle-income countries regarding the total fertility rate and the...
asked 9 minutes ago -
I need to determine the concentration of hydrogen peroxide in a
solution using titrimetric analysis
25...
asked 18 minutes ago -
Your are the Vice-President of operations for a New Orleans food
chain. In the aftermath of...
asked 23 minutes ago -
Create a flowchart and a program; test the program. Program
Requirements.
- There are 10 members...
asked 23 minutes ago -
Which of the following is not a sensory receptor?
a. a hair cell
b. a rod
c. a...
asked 26 minutes ago -
Does the launch speed depend significantly upon the launching
angle? Is it reasonable?
asked 56 minutes ago -
A disc of moment of inertia 3.00 kgm2 is rotating with angular
velocity 2.00 rad/s about...
asked 41 minutes ago -
Hi, can somone help me with this question?
Omega Company reported the following information for the...
asked 47 minutes ago -
WHY SOME PEOPLE DECIDE TO STAY IN THEIR HOMES WHEN AN EXTREME
WEATHER EVENT SURROUNDS THEM.
asked 44 minutes ago -
Which of the following is a financial intermediary?
a mutual fund
the stock market
a U.S....
asked 54 minutes ago -
Completely and thoroughly explain how control charts could be
used by a company that makes eyeglass...
asked 1 hour ago -
Explain how the equilibrium loanable funds interest rate is
determined? Please draw a picture of what...
asked 1 hour ago