How do you figure out inventory turnover ratio and average days to sell inventory for a...
How do you figure out inventory turnover ratio and average days to sell inventory for a company?
Homework Answers
The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory. The cost of goods sold is available in the income statement and the average inventory is calculated by adding beginning inventory and ending inventory and then dividing it by 2.
Average days to sell inventory is calculated by dividing the Ending inventory by the cost of goods sold and then multiplying this figure with total number of days in a year, usually the total days in a year are 365 days.
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How do you figure out inventory turnover ratio and average days
to sell inventory for a...
usinf the amounts below, calculate the inventory turnover ratio, average days in inventory, and gross profit...
usinf the amounts below, calculate the inventory turnover
ratio, average days in inventory, and gross profit ratio.
nventory turnover ratio, average days in inventory Net sales $250,000 180,000 Cost of goods sold Beginning inventory Ending inventory 55,000 45,000 ing a periodic system (106-8)
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
1) Current ratio. 2) Average days to sell inventory. (Use average inventory.) 4] Return on 5)...
1) Current ratio. 2) Average days to sell inventory. (Use average inventory.) 4] Return on 5) Gross identify which of answer and to c, which company appears to be charging higher prices for its goods? txplain your answer and identify which of the ratio(s) from Part1 rs to have the higher level of financial y appears to be the more efficient at using its assets? which of the ratios) from Part 1you used to reachyour conclusion.
prepare the following ratios for the current year. current ratio acid test ratio inventory turnover Days...
prepare the following ratios for the current
year.
current ratio
acid test ratio
inventory turnover
Days sales in average receivables.
- Х Requirements Virginia's Crafts has provided the following data: (Click the icon to view the financial information.) Read the requirements Compute the following ratios for the current year for Virginia's Crafts: a. Current ratio b. Acid-test ratio c. Inventory turnover d. Days' sales in average receivables (assume all sales are on credit) a. Current ratio Enter the formula on...
For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover
Required: 1a. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts receivable turnover, (d) inventory turnover, (e) days' sales in inventory, and (f) days' sales uncollected. (Do not round intermediate calculations.) 1b. Identify the company you consider to be the better short-term credit risk.
Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5)...
Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin (7) Asset turnover (8) Return on assets (9) Return on common stockholders' equity (10) Debt to assets ratio (11) Times interest earned (12) Free cash flow Target 1.63 :1 8.6 times 42.0 days 6.6 times 55.3 days 3.8 % 1.5 times 5.6 % 17.1 % 66 % 6.5 times $3,656 Wal-Mart 0.87 :1 101.4 times 3.6 days 9.0...
Current ratio = 2.6 times Credit sales $1,314m Average collection period 50 days Inventory turnover 1.50...
Current ratio = 2.6 times Credit sales $1,314m Average collection period 50 days Inventory turnover 1.50 times Total asset turnover 0.50 times Debt ratio 75% Use the above information to complete the balance sheet below. (Enter your answer in millions. Use 365 days a year.) Cash million million Current liabilities Accounts receivable $ 670 million million Long-term debt Inventory million 0 million Total debt Current assets 670 million million Stockholders' equity million 670 million Fixed assets $ 0 million Total...
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales...
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2019 sales (all on credit) were $197,000, its cost of goods sold is 80% of sales, and it earned a net profit of 4%, or $7,880. It turned over its inventory 7 times during the year, and its DSO was 33 days. The firm had fixed assets totaling $31,000. Chastain's payables deferral period is 50 days....
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales...
Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash conversion cycle. Chastain's 2019 sales (all on credit) were $226,000, its cost of goods sold is 80% of sales, and it earned a net profit of 3%, or $6,780. It turned over its inventory 6 times during the year, and its DSO was 33 days. The firm had fixed assets totaling $30,000. Chastain's payables deferral period is 40 days....
usinf the amounts below, calculate the inventory turnover
ratio, average days in inventory, and gross profit ratio.
nventory turnover ratio, average days in inventory Net sales $250,000 180,000 Cost of goods sold Beginning inventory Ending inventory 55,000 45,000 ing a periodic system (106-8)
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
Instructions For 2017 and 2018, calculate current ratio, quick (acid-test) ratio, inventory turnover and days' inventory outstanding (DIO), accounts receivable turnover, days' sales in average receivables or days' sales outstanding (DSO), accounts payable turnover, days' payable outstanding (DPO), and cash conversion cycle (in days). a. Use the cost of goods sold in the formula for accounts payable turnover. b. Use a 365-day year for calculations as needed. c. Use cell references from prior calculations, if applicable. (Always use cell references...
1) Current ratio. 2) Average days to sell inventory. (Use average inventory.) 4] Return on 5) Gross identify which of answer and to c, which company appears to be charging higher prices for its goods? txplain your answer and identify which of the ratio(s) from Part1 rs to have the higher level of financial y appears to be the more efficient at using its assets? which of the ratios) from Part 1you used to reachyour conclusion.
prepare the following ratios for the current
year.
current ratio
acid test ratio
inventory turnover
Days sales in average receivables.
- Х Requirements Virginia's Crafts has provided the following data: (Click the icon to view the financial information.) Read the requirements Compute the following ratios for the current year for Virginia's Crafts: a. Current ratio b. Acid-test ratio c. Inventory turnover d. Days' sales in average receivables (assume all sales are on credit) a. Current ratio Enter the formula on...
Ratio (1) Current ratio (2) Accounts receivable turnover (3) Average collection period (4) Inventory turnover (5) Days in inventory (6) Profit margin (7) Asset turnover (8) Return on assets (9) Return on common stockholders' equity (10) Debt to assets ratio (11) Times interest earned (12) Free cash flow Target 1.63 :1 8.6 times 42.0 days 6.6 times 55.3 days 3.8 % 1.5 times 5.6 % 17.1 % 66 % 6.5 times $3,656 Wal-Mart 0.87 :1 101.4 times 3.6 days 9.0...
Current ratio = 2.6 times Credit sales $1,314m Average collection period 50 days Inventory turnover 1.50 times Total asset turnover 0.50 times Debt ratio 75% Use the above information to complete the balance sheet below. (Enter your answer in millions. Use 365 days a year.) Cash million million Current liabilities Accounts receivable $ 670 million million Long-term debt Inventory million 0 million Total debt Current assets 670 million million Stockholders' equity million 670 million Fixed assets $ 0 million Total...
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