An analyst has obtained the following information about ABC, Inc. Sales: $63,261 COGS = $13,747 Accounts...

Question

Question

An analyst has obtained the following information about ABC, Inc.

Sales: $63,261
COGS = $13,747
Accounts Receivables = $11,241
Accounts Payable = $8,601
Inventory = $8,637
Assume 365 days.

What is the Inventory Period? That is, what is the Days Inventory Held?

Enter your answer rounded off to two decimal points.

Answer 1

Answer #1

Step 1 - Calculation of Inventory Turnover

= Cost of Goods Sold / Inventory

COGS = $13,747

Inventory = $8,637

Inventory Turnover = $13,747 / $8,637

= 1.59 times

Step 2 - Calculation of Inventory Period / Days Inventory Held

= 365 days / Inventory Turnover

= 365 days / 1.59

= 229.56 days

Answer 2

Similar Homework Help Questions

An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to...

An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $58,983 Cost of Goods Sold (COGS) = $22,810 Cash Cycle = 39 days Operating Cycle = 148 days Accounts Receivable Period = AR Period = Average Collection Period (ACP) = 25 days What is the company's Accounts Payable balance? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer...
An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to...

An analyst has obtained the following information regarding ABC, Inc. Using this information, he needs to estimate the company's Accounts Payable. Sales = $71,405 Cost of Goods Sold (COGS) = $32,168 Cash Cycle = 24 days Operating Cycle = 75 days Accounts Receivable Period = AR Period = Average Collection Period (ACP) = 12 days What is the company's Accounts Payable balance? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer...
Calculate the cash cycle based on the following information: Sales = $146,625 COGS = $29,097 Inventory...

Calculate the cash cycle based on the following information: Sales = $146,625 COGS = $29,097 Inventory = $10,853 Accounts Receivable = $35,971 Accounts Payable = $10,456 Enter your answer rounded off to two decimal points.

Calculate the operating cycle based on the following information: Sales = $91,005 COGS = $33,713 Inventory...

Calculate the operating cycle based on the following information: Sales = $91,005 COGS = $33,713 Inventory = $15,464 Accounts Receivable = $23,971 Enter your answer rounded off to two decimal points.
Calculate the operating cycle based on the following information: Sales = $94,766 COGS = $34,817 Inventory...

Calculate the operating cycle based on the following information: Sales = $94,766 COGS = $34,817 Inventory = $12,905 Accounts Receivable = $15,405 Enter your answer rounded off to two decimal points.
5 points ABC Co., Inc. has Php 5,000,000 of inventory on average and annual sales of...

5 points ABC Co., Inc. has Php 5,000,000 of inventory on average and annual sales of Php 30,000,000. Assume there are 365 days per year. What is the ABC Co., Inc.'s inventory conversion period? * O 30.25 days O 60.83 days O 45.00 days O 72.44 days 55.25 days

ABC Corporation currently has an Inventory Turnover of 26.99, an Accounts Receivable Turnover of 15.36, and...

ABC Corporation currently has an Inventory Turnover of 26.99, an Accounts Receivable Turnover of 15.36, and an Accounts Payable Turnover of 19.73. How many days are in the cash cycle? Enter your answer rounded off to two decimal points.
ABC Company has an average collection period of 41 days and factors all of its receivables...

ABC Company has an average collection period of 41 days and factors all of its receivables immediately at a 1.1 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing? Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
ABC Corporation currently has an Inventory Turnover of 11.59, an Accounts Receivable Turnover of 19.69. How...

ABC Corporation currently has an Inventory Turnover of 11.59, an Accounts Receivable Turnover of 19.69. How many days are in the operating cycle? Enter your answer rounded off to two decimal points.

Shelton, Inc., has sales of $20 million, total assets of $17.6 milion, and total debt of...

Shelton, Inc., has sales of $20 million, total assets of $17.6 milion, and total debt of $6.7 million. Assume the profit margin is 8 percent. What is the company's net income? (Do not round intermediate calculations. Enter your answer in dollars not in millions, e.g., 1,234,567.) Net income $ 1,600,000 What is the companys ROA? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) ROA 9.09 % What is the company's...