Homework Answers
A company’s Inventory Turnover Ratio measures the number of times the company sells its average inventory balance during the year.
It shows the number of times the company has sold and replaced inventory during the period.
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
Explanations for other choices:
The profitability on sales of inventory during the year is calculated as: (Net Income / Net Sales) * 100.
The average cost at which the inventory was purchased during the year depends on cost of total purchases made during the year and the number of units purchased during the year.
The quantity of inventory remaining at the end of year is Closing Stock of Inventory. Closing Stock is calculated as: Opening Stock + Purchase – Cost of Goods Sold
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A company's inventory turnover ratio measures: 12 Multiple Choice The bones of inventory during the year...
Saved The receivables turnover ratio indicates DEL Multiple Choice e H ow efficient the company is...
Saved The receivables turnover ratio indicates DEL Multiple Choice e H ow efficient the company is at managing sales and inventory. The relationship between sales and cost of goods sold. number of times during a year that the average accounts receivables were collected. 0 CA The relationship between cash sales and credit sales < Prev 25 of 30 Next > newcom ecucduUILCUNDU Help Save & Exit Saved uiz At the end of the year, Mark Inc. estimates future bad debts...
TB 13-52 Which of the following measures would assist... Which of the following measures would assist...
TB 13-52 Which of the following measures would assist... Which of the following measures would assist in assessing the profitability of a company? points Multiple Choice eBook Current ratio References Debt-to-assets ratio Receivables turnover ratio Fixed asset turnover ratio TB 13-71 Judging only from the ratios given, which of... Judging only from the ratios given, which of the following clothing wholesalers is least likely to have cash flow problems? points Multiple Choice eBook Company D, who has a receivables turnover...
Which of the following would cause the greatest increase in a company's inventory turnover ratio? Multiple...
Which of the following would cause the greatest increase in a company's inventory turnover ratio? Multiple Choice Decreasing the amount of inventory on hand while unit sales are increasing. Keeping the same amount of inventory on hand while unit sales are decreasing. Keeping the same amount of inventory on hand while unit sales are increasing. Increasing the amount of inventory on hand while unit sales are increasing.
Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales...
Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $123,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.22 times during the year. Its receivables balance at the end of the year was $13,125.85 and its payables balance at the end of the year was $7,395.59. Using this information calculate the firm's cash...
Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales...
Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $156,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.96 times during the year. Its receivables balance at the end of the year was $13,183.94 and its payables balance at the end of the year was $7,401.53. Using this information calculate the firm's cash...
Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and...
Quantitative Problem: Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $143,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.66 times during the year. Its receivables balance at the end of the year was $13,143.85 and its payables balance at the end of the year was $7,398.31. Using this information calculate the...
Question 23 (0.2 points) Which of the following is NOT true about the inventory turnover ratio?...
Question 23 (0.2 points) Which of the following is NOT true about the inventory turnover ratio? O It is calculated by dividing inventory by cost of goods sold. Too high a turnover or too low a turnover could be a warning sign. OIt measures how many times the inventory is turned over into saleable products. The more times a firm can turnover its inventory, the better.
P 6-24 Required Answer the following multiple-choice questions: a. A company's current ratio is 2.2 to...
P 6-24 Required Answer the following multiple-choice questions: a. A company's current ratio is 2.2 to 1 and quick (acid-test) ratio is 1.0 to 1 at the beginning of the year. At the end of the year, the company has a current ratio of 2.5 to 1 and a quick ratio of 0.8 to 1. Which of the following could help explain the divergence in the ratios from the beginning to the end of the year? (continued R6-Liquidity of Short...
company's Inventory balance at the end of the year was $194,300 and $207.000 at at the...
company's Inventory balance at the end of the year was $194,300 and $207.000 at at the beginning of the year. Its Accounts Payable balance at the end of the year was 591.000 and $86,300 at the beginning of the year, and its cost of goods sold for the year was 5727000. The company's total amount of cash payments for merchandise during the year equals: Multiple Choice Ο 1ΟΟΟΟ Ο Ο Ο Ο
The inventory turnover reflects how many times, on average, that the inventory balance was sold during...
The inventory turnover reflects how many times, on average, that the inventory balance was sold during the year. is increased when accounts receivable increases. is decreased if inventory balances decrease from the beginning of the year to the end of the year. is improved if cost of goods sold decrease and inventory balances increase from one year to the next.
Saved The receivables turnover ratio indicates DEL Multiple Choice e H ow efficient the company is at managing sales and inventory. The relationship between sales and cost of goods sold. number of times during a year that the average accounts receivables were collected. 0 CA The relationship between cash sales and credit sales < Prev 25 of 30 Next > newcom ecucduUILCUNDU Help Save & Exit Saved uiz At the end of the year, Mark Inc. estimates future bad debts...
TB 13-52 Which of the following measures would assist... Which of the following measures would assist in assessing the profitability of a company? points Multiple Choice eBook Current ratio References Debt-to-assets ratio Receivables turnover ratio Fixed asset turnover ratio TB 13-71 Judging only from the ratios given, which of... Judging only from the ratios given, which of the following clothing wholesalers is least likely to have cash flow problems? points Multiple Choice eBook Company D, who has a receivables turnover...
Question 23 (0.2 points) Which of the following is NOT true about the inventory turnover ratio? O It is calculated by dividing inventory by cost of goods sold. Too high a turnover or too low a turnover could be a warning sign. OIt measures how many times the inventory is turned over into saleable products. The more times a firm can turnover its inventory, the better.
P 6-24 Required Answer the following multiple-choice questions: a. A company's current ratio is 2.2 to 1 and quick (acid-test) ratio is 1.0 to 1 at the beginning of the year. At the end of the year, the company has a current ratio of 2.5 to 1 and a quick ratio of 0.8 to 1. Which of the following could help explain the divergence in the ratios from the beginning to the end of the year? (continued R6-Liquidity of Short...
company's Inventory balance at the end of the year was $194,300 and $207.000 at at the beginning of the year. Its Accounts Payable balance at the end of the year was 591.000 and $86,300 at the beginning of the year, and its cost of goods sold for the year was 5727000. The company's total amount of cash payments for merchandise during the year equals: Multiple Choice Ο 1ΟΟΟΟ Ο Ο Ο Ο
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