Homework Answers
A) Gross profit ratio = Gross profit / Net sales = (187,000 / 662,000)*100 = 28.25%
B) Inventory turnover ratio = cost of goods sold / Average inventory
Average inventory= (21,250 + 24,850)/2 = $ 23,050
Ratio = 474,500/ 23,050 = 20.56
C) Average days to sell inventory = (Average inventory / cost of goods sold )*365
(23,050 / 474,500)*365 = 17.73 days.
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Cornerstone Exercise 6-27 (Algorithmic) Inventory Analysis Twin Peaks Corporation reported the following information for the current...
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Singleton Inc. reported the following information for the current year: Net sales $650,000 Inventory, 1/1 $21,250 Cost of goods sold 495,000 Inventory, 12/31 24,850 Gross profit $155,000 Required: Note: Round all answers to two decimal places. Assume a 365 day year. a. Compute Singleton's gross profit ratio. X % b. Compute Singleton's inventory turnover ratio. X c. Compute Singleton's average days to sell inventory. x days
please help Singleton Inc. reported the following information for the current year: Net sales $650,000 Inventory,...
please help
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please help
Singleton Inc. reported the following information for the current year: Net sales $650,000 Inventory, 1/1 $21,250 Cost of goods sold 495,000 Inventory, 12/31 24,850 Gross profit $155,000 Required: Note: Round all answers to two decimal places. Assume a 365 day year. a. Compute Singleton's gross profit ratio. X % b. Compute Singleton's inventory turnover ratio. X c. Compute Singleton's average days to sell inventory. x days
please help
Singleton Inc. reported the following information for the current year: Net sales $650,000 Inventory, 1/1 $21,250 Cost of goods sold 495,000 Inventory, 12/31 24,850 Gross profit $155,000 Required: Note: Round all answers to two decimal places. Assume a 365 day year. a. Compute Singleton's gross profit ratio. X % b. Compute Singleton's inventory turnover ratio. X c. Compute Singleton's average days to sell inventory. x days
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(e) Ratio Analysis Zipper Corporation reported the following condensed income statement for 2015: Sales Cost of goods sold Gross profit Less expenses Net income before taxes Less income taxes Net income after taxes $5,300,000 3,710,000 $1,590,000 -1,340,000 $250,000 100,000 $150,000 Assume the following: Average inventory Average accounts receivable Average accounts payable $680,000 $1,290,000 $400,000 (Use 365 days a year) Compute the following: (Round answers to 2 decimal places, e.g. 52.75.) Inventory turnover times Accounts receivable turnover times Average number of...
Cornerstone Exercise 9-41 (Algorithmic) Ratio Analysis Red Corporation had $2,199,000 in total liabilities and $3,500,000 in total assets as of December 31, 2020. Of Red's total liabilities, $350,000 is long-term. Required: Calculate Red's debt to assets ratio and its long-term debt to equity ratio. Round your answers to four decimal places. Debt to Total Assets Long-Term Debt to Total Equity
Cornerstone Exercise 6-27 (Algorithmic) (Appendix) Inventory Costing Methods: Periodic FIFO Filimonov Company has the following information related to purchases and sales of one of its inventory items: Date Description Units Purchased at Cost Units Sold at Retail June 1 Beginning Inventory 150 units @ $10 - $1,500 9 Purchase 1 200 units @ $12 = $2,400 Sale 1 300 units @ $25 Purchase 2 250 units @ $14 = $3,500 Sale 2 225 units @ $25 Assume that Filimonov uses...
Brief Exercise 6-16 Calculate inventory ratios (L06-7) Use the following information: Net sales Cost of goods sold Beginning inventory Ending inventory $235,000 168,000 52,000 42,000 a. Calculate the inventory turnover ratio. (Round your answer to place.) int Inventory turnover ratio times erences b. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) Average days in inventory days c. Calculate the gross profit ratio. (Round your answer...
More Info X Х a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Print Done und intermediary calculations to two decimal places X XX and round your final answer to a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio b. Compute the ca: 365 days / Accounts...
Exercise 5-13 Inventory turnover and days' sales in inventory LO A3 The following is Information for Palmer Co. Cost of goods sold Ending inventory $ 643,825 97,422 2016 $426,650 87,750 2015 $ 391,300 92,500 Use the above Information to compute Inventory turnover for 2017 and 2016, and its days' sales In Inventory at December 31, 2017 and 2016. % Answer is not complete. (a) Use the above information to compute inventory turnover for 2016, and its days' sales in inventory...
E13-7 Computing and Interpreting Selected Liquidity Ratios (LO 13-4, LO 13-5] Double West Suppliers (DWS) reported sales for the year of $200,000, all on credit. The average gross profit percentage was 30 percent on sales. Account balances follow: Accounts receivable (net) Inventory Beginning $35,000 50,000 Ending $45,000 30,000 Required: 1. Compute the following turnover ratios. 2. By dividing 365 by your ratios from requirement 1, calculate the average days to collect receivables and the average days to sell inventory. Required...
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