Question

for 201) (to the dosest Use the following information regarding Windsor, Inc. and Pina Colada Corp. to answer the question "Which amount is equal to Windsor, Inc. "days in inventory" decimal place)? Year Inventory Turnover Ratio Ending Inventory 26340 29890 indsor, Inc 6.4 6.2 $25860 Colada Corp. 2015 24750 5.2 5.5 57 days 58.9 days 70.2 days 66.4 days

Answer 1

SOLUTION

Question-1

Days in inventory for 2017 for Windsor corp. is 58.9 days

Days in inventory = 365 / Inventory turnover ratio

= 365 / 6.2

= 58.9 days

Question-2

Sheffield Inventory turnover ratio is 5.7 times

Inventory turnover ratio = Cost of goods sold / Average inventory

= Cost of goods sold / [(Beginning inventory + Ending inventory) / 2]

= $644,000 / [($83,000 + $142,000) / 2]

= $644,000 / $112,500

= 5.7 times

Question-3

Bramble Inventory turnover ratio for 2017 is 6.7 times

Inventory turnover ratio = Cost of goods sold / Average inventory

= Cost of goods sold / [(Beginning inventory + Ending inventory) / 2]

= $210,600 / [($29,190 + $33,650) / 2]

= $210,600 / $31,420

= 6.7 times