The inventory turnover calculations
Homework Answers
Which of the following statements on inventory turnover is incorrect? a. Inventory turnover is equal to...
Which of the following statements on inventory turnover is incorrect? a. Inventory turnover is equal to the cost of goods sold divided by average inventory. b. When costs are rising, inventory turnover under LIFO will be lower than under FIFO. c. When costs are decreasing, inventory turnover under LIFO will be lower than under FIFO. d. When costs are rising, inventory turnover under LIFO will be higher than under FIFO. Which of the following statements is incorrect? a.Inventory write-offs decrease...
Inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December...
Inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December 31 for Holland Company are shown below. 20Y4 20Y3 Cost of merchandise sold $1,284,800 $784,385 Inventories: Beginning of year $263,530 $184,690 End of year 378,870 263,530 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Y3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and...
Inventory Turnover and days' sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are...
Inventory Turnover and days' sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kracker Foodstuff Winston Corp. Inc. Stores Cost of merchandise sold $34,310.0 $33,215.0 $35,405.0 Inventory, beginning of year 1,993.7 2,042.0 1,498.7 Inventory, end of year 1,954.3 1,962.0 1,411.4 a. & b. Determine...
Inventory Turnover and days' sales in inventory Kroger, Sprouts Farmers Market, Inc., and Ingles Markets, Inc....
Inventory Turnover and days' sales in inventory Kroger, Sprouts Farmers Market, Inc., and Ingles Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kroger Sprouts Ingles $3,113 Cost of merchandise sold $94,894 $3,460 8,123 264 372 Inventory, end of year Inventory, beginning of year 7,781 230 349 a. & b. Determine the inventory...
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...
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....
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.
CASH CONVERSION CYCLE Chastain Corporation is trying to determine the effect of its inventory turnover ratio...
CASH CONVERSION CYCLE 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 2016 sales (all on credit) were $183,000; its cost of goods sold is 80% of sales, and it earned a net profit of 4%, or $7,320. It turned over its inventory 4 times during the year, and its DSO was 39 days. The firm had fixed assets totaling $34,000. Chastain's payables deferral period...
Inventory Turnover and days' sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kracker Foodstuff Winston Corp. Inc. Stores Cost of merchandise sold $34,310.0 $33,215.0 $35,405.0 Inventory, beginning of year 1,993.7 2,042.0 1,498.7 Inventory, end of year 1,954.3 1,962.0 1,411.4 a. & b. Determine...
Inventory Turnover and days' sales in inventory Kroger, Sprouts Farmers Market, Inc., and Ingles Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kroger Sprouts Ingles $3,113 Cost of merchandise sold $94,894 $3,460 8,123 264 372 Inventory, end of year Inventory, beginning of year 7,781 230 349 a. & b. Determine the 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 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...
CASH CONVERSION CYCLE 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 2016 sales (all on credit) were $183,000; its cost of goods sold is 80% of sales, and it earned a net profit of 4%, or $7,320. It turned over its inventory 4 times during the year, and its DSO was 39 days. The firm had fixed assets totaling $34,000. Chastain's payables deferral period...
Most questions answered within 3 hours.
-
You found out that now you are going to receive payments of
$8,500 for the next...
asked 2 seconds from now -
17.
Technician A says that leaking components are usually repaired
rather than replaced. Technician B says...
asked 39 seconds ago -
A) An Operon is:?
1- A gene that affect another gene
transcription.
2. A gene coding...
asked 7 minutes ago -
When opening a file, use this method to determine whether a file
exists before you attempt...
asked 11 minutes ago -
Sales total $300,000 when variable costs total $180,000 and
fixed costs are $60,000. Breakeven sales total:...
asked 18 minutes ago -
1)
To calculate the depth of a water well, an explorer drops a stone and with...
asked 15 minutes ago -
0.429-g sample of gas occupies 125 mL at 60. cm of Hg and 25°C.
The molar...
asked 17 minutes ago -
The
pH of a 0.90M solution of boric acid (H3BO3) is measured to be
4.64.
Calculate...
asked 37 minutes ago -
on april 10, a company acquired land valued at $58,000 in
exchange for 1,000 shares of...
asked 42 minutes ago -
Is
ampicillin or solvents (such as acetone) more effective at killing
off bacteria, in general? Explain...
asked 47 minutes ago -
The current risk-free rate is 4.0% and the market risk premium
is 5.0%. If Ford Motor...
asked 1 hour ago -
Advances in technology have increased our opportunities to
connect with others. Along with the benefits of...
asked 1 hour ago