Solution
Gross profit Ratio | |||||
Numerator | / | Denominator | = | Gross profit Ratio | |
Gross profit | / | Sales revenue | = | Gross profit Ratio | |
Green | $ 34,356.00 | / | $ 101,304.00 | = | 33.91% |
White | $ 23,409.00 | / | $ 69,019.00 | = | 33.92% |
.
Inventory turnover | |||||
Numerator | / | Denominator | = | Inventory turnover | |
Cost of goods sold | / | Average Inventory | = | Inventory turnover | |
Green | $ 66,948.00 | / | $ 13,048.50 | = | 5.13 |
White | $ 46,510.00 | / | $ 11,325.50 | = | 4.11 |
.
Average days in inventory | |||||
Numerator | / | Denominator | = | Average days in inventory | |
Days in year | / | Inventory turnover ratio | = | Average days in inventory | |
Green | 365 | / | $ 5.13 | = | 71.2 or 71.15 days |
White | 365 | $ 4.11 | 88.8 or 88.81 days |
Average inventory = (Beginning inventory +Ending Inventory) /2
Real World Financials The table below contains selected information from recent financial statements of Green and...
Real World Financials The table below contains selected information from recent financial statements of Green and White, two companies in the home improvement retail Industry ($ in millions): Net sales Cost of goods sold Year-end inventory Green 1/28/2018 1/29/2017 $102,504 $96,195 68,148 63,882 White 2/2/2018 2/3/2017 $70,219 $66,617 46,810 44,153 12,993 12,058 14,348 14,149 Required: Calculate the gross profit ratio, the inventory turnover ratio, and the average days in Inventory for the two companies for their fiscal years ending in...
Real World Financials The table below contains selected information from recent financial statements of Green and White, two companies in the home improvement retail industry (S in millions): Net sales Coat of goods sold Year-end inventory Green 1/28/2018 1/29/2017 $ 101, 104 $94.795 66,748 62,482 12,948 12,749 White 2/2/2018 2/3/2017 $ 68,819 $ 65,217 45,410 42,753 11,593 10,658 Required: Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies for their...
PLEASE GIVE SOLUTION IN THE SAME FORMAT AS THE IMAGE THANK YOU! Real World Financials The table below contains selected Information from recent financial statements of Green and White, two companies in the home Improvement retail Industry ($ In millions): Net sales Cost of goods sold Year-end inventory Green 1/28/2018 1/29/2017 $102,504 $96, 195 63,882 14,348 14,149 White 2/2/2018 2/3/2017 $70,219 $66, 617 46,810 44,153 1 2,993 12,958 Required: Calculate the gross profit ratio, the Inventory turnover ratio, and the...
Real World Financials The table below contains selected information from recent financial statements of The Home Depot, Inc., and Lowe’s Companies, Inc., two companies in the home improvement retail industry ($ in millions): Home Depot Lowe's 1/31/16 2/1/15 1/29/16 1/30/15 Net sales $ 81,602 $ 77,544 $ 56,207 $ 53,311 Cost of goods sold 54,212 49,542 25,665 33,824 Year-end inventory 13,430 13,050 9,397 8,870 Industry Averages: Gross profit ratio 33 % Inventory turnover ratio 3.9 times Average days in inventory...
Real World Financlals The table below contalns selected Information from recent financlal statements of The Home Depot, Inc., and Lowe's Companles, Inc., two companles In the home Improvement retall Industry (S In millions) Home Depot Lowe's Net sales Cost of goods sold Year-end inventory 1/31/16 2/1/15 1/29/16 1/30/15 $79,122 $75,964 $53,727 $5e,831 51,73248,92 29,934 33,264 1e,94 1e,59e ,157 8,63e Industry Averages: Gross profit ratio Inventory turnover ratio Average days in inventory 33 % 3.9 times 94 days Required Calculate the...
Exercise 8-25 Ratio analysis; Home Depot and Lowe's Real World Financials The table below contains selected information from recent financial statements of The Home Depot, Inc., and Lowe's Companies, Inc., two companies in the home improvement retail industry ($ in millions): Home Depot 1/28/2018 1/29/2017 Net sales $100,904 $ 94,595 Cost of goods sold 66,548 62,282 Year-end inventory 12,748 12,549 Lowe's 2/2/2018 2/3/2017 $68,619 $65,017 45,210 42,553 11,393 10,458 Required: Calculate the gross profit ratio, the inventory turnover ratio, and...
need help ? Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2016, were inventory, $52.900; total assets, $229,400; common stock, $88,000; and retained earnings. $32,712.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 450, 600 Cost of goods sold 297,650 Gross profit 152,950 Operating expenses 99, 100 Interest expense 3,800 Income before taxes 50,050 Income taxes 20. 162 Net Income $ 29,888 $ 16,500...
i need help and a expaination please ? Selected year-end financial statements of Cabot Corporation follow. All sales were on credit: selected balance sheet amounts at December 31, 2016, were inventory, $52.900; total assets. $229.400; common stock, $88,000; and retained earnings, $32,712.) CABOT CORPORATION Income Statement For Year Ended December 31, 2017 Sales $ 450,600 Cost of goods sold 297,650 Gross profit 152,950 Operating expenses 99, 100 Interest expense 3,800 Income before taxes 50.050 Income taxes 20, 162 Net income...
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $54,900; total assets, $259,400; common stock, $81,000; and retained earnings, $34,712) слвот СОRРORATION Income Statement For Current Year Ended Decenber 31 454,600 297,850 156,750 99,100 4,000 S3.650 21,612 32,038 Sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income слвот СORPORATION Balance Sheet December...
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $46,900; total assets, $219,400; common stock, $81,000; and retained earnings, $38,566.) CABOT CORPORATION Income Statement For Current Year Ended December 31 Sales $ 450,600 Cost of goods sold 298,450 Gross profit 152,150 Operating expenses 99,500 Interest expense 4,700 Income before taxes 47,950 Income tax expense 19,316 Net income $ 28,634 CABOT CORPORATION Balance...