Answered: Compute the inventory turnover ratio…

Compute the inventory turnover ratio based on the following data: Sales revenue $275,000 Cost of goods sold 168,000 Beginning inventory 35,000 Ending inventory 45,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 16EA: Compute Altoona Companys (a) inventory turnover ratio and (b) number of days sales in inventory...

See similar textbooks

Related questions

Q: Gleason Guitars produces acoustic guitars. The table below contains budget and actual information…

A: Variance analysis :— Variance Analysis is nothing but the difference between Standard Cost and…

Q: 35% 39.6% Standard deduction Exemption (per person) up to $418,400 above $418,400 $6350 $4050 up to…

A: Here discuss about the details of tax bracket and its calculation which are related with this for…

Q: UUsing the following income statements, perform the calculations needed for horizontal analyses.…

A: Lets understand the basics. There are two type of analysis are generally made which are, (1)…

Q: Calculate what Jordan Manufacturing Co.'s Flexible Budget would be at an estimate of 9,000 units,…

A: Variable costs are those costs which changes with change in level of activity. Fixed costs are those…

Q: The following data are taken from the financial statements of Sheffield Company. Accounts receivable…

A: As per the given information: 20222021Accounts receivable (net), end of year$555,000$470,000Net…

Q: rest Components makes aircraft parts. The following transactions occurred in July. Purchased…

A: Answer : a. Prepare Journal entries b. Prepare T account

Q: Kutcher Systems sold land, investme Kutcher also purchased treasury sto Required: 1. What amount…

A: Introduction:- A cash flow statement denotes total amount cash is inflows and cash outflows your…

Q: 1. 2. 3. 4. 5. 6. Accounts receivable decreased by $15.400 during the year. Inventory increased by…

A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…

Q: nstructions: The audit profession is considered one of the important professions for society due to…

A: The audit professional bodies play a critical role in society and the best way to understand their…

Q: At the beginning of the year a sole proprietorship had liabilities of 100k and owners equity of 96k.…

A: Asset :— Assets is Something which Containing economic Value & Future Value. It is the Part of…

Q: received from a customer for which Services have not been provided ? would it be accrued expenses,…

A: The accrual basis accounting records the revenue and expenses when they are incurred irrespective of…

Q: Turner Excavation maintains a checking account and has decided to open a petty cash fund. The…

A: Cash Outflow - Any cash leaving a firm or company is referred to as an outflow of cash. It could be…

Q: A department has budgeted monthly manufacturing overhead cost of $610000 plus $5 per direct labor…

A: Solution: Budgeted fixed overhead = $610,000 Budgeted variable overhead = $5 per Direct labor hour

Q: The following events occur for The Underwood Corporation during 2021 and 2022, its first two years…

A: Accounts receivables are current assets which shows that the amount that an entity has to collect…

Q: Silver Incorporated reported the following results from last year’s operations: Sales $…

A: Return on investment (ROI) :— It is the ratio between net operating income and average operating…

Q: What is the value of the inventory on August 20 if the last in first out method of evaluation is…

A: Last in First Out (LIFO) is one of the method of valuation of inventory. Under this method, Closing…

Q: What is the depreciation deduction, using 200% DB method, after year 2 for an asset that costs…

A: Depreciation rate as per double declining balance method = (100/useful life)×2 = (100/6)×2 =…

Q: Taxable income and pretax financial income would be identical for Carla Co. except for its…

A: Introduction: A journal entry is used to document a business transaction in the accounting records…

Q: QUESTION 5 A. You work as a manager at Fynn & Partners, an audit firm that provides various services…

A: Issues while accepting contract with Client The auditor needs to look into the client's background,…

Q: Recommend THREE (3) audit procedures which can be performed to prevent external auditor's reliance…

A: The external auditor shall determine whether work of the internal audit function can be used for the…

Q: Region Jet has a $50 million liability at December 31, 20Y1, of which $10 million is payable in…

A: Types of Liability 1. Current Liabilities: The liabilities which are payable within 12 months are…

Q: Smatter Corporation purchased land for a new building. Which of the following costs would not be…

A: Introduction: Plant assets are fixed assets with a useful life of more than a year that a company…

Q: Diane's Designs has two classes of stock authorized: 7%, $10 par value preferred and $1 par value…

A: Introduction: A journal entry is used to document a business transaction in the accounting records…

Q: Required information [The following information applies to the questions displayed below.] As of…

A: The balance sheet is a part of financial reports that indicates the financial position of a business…

Q: Absorption and variable costing income statements During the first month of operations ended July…

A: Introduction: Absorption costing, also known as "full costing," is a method of managerial accounting…

Q: Exercise 10-1 Cost of plant assets LO C1 Rizio Co. purchases a machine for $10,900, terms 1/10,…

A: Introduction: The amount of money required to create, market, and sell items and services or to buy…

Q: Total equity 145k at the beginning of the year, 210k in revenues 165k in expenses for the year.…

A: Since, Basic accounting equation is Total assets = Total liabilities + Total equity

Q: How much is the defined benefit cost for 2022?

A: As per IAS 19 the entity should recognize the expenses to be paid to employee in future due to the…

Q: The present worth of a multiyear investment with all positive cash flows (incomes) other than the…

A: Minimum acceptable rate of return (MARR), is the minimum required rate of return or target rate that…

Q: Which of the following is an election or calculation made by the partner rather than the…

A: Partnership is one of the forms of business organizations wherein two or more than two persons work…

Q: How about these questions: 1. How much is the balance of Account Receivable at December 31, 2021?…

A: Following is the answer of two questions.

Q: Which adjustments need to be recorded in the accounting records? Those that affected the bank…

A: Introduction: Accounting records include all paperwork and books used to generate financial…

Q: Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows…

A: Introduction: A journal entry is used to record a business deal in a company's financial records. A…

Q: How to do the post-adjustment trial balance of Fling Incorporated for the financial year ended 31…

A: A financial statement represents the financial position and performance of the business entity…

Q: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following…

A: Introduction: The acquisition cost of equipment is the net invoicing price of the equipment,…

Q: Carbon Company provides the following information about resources. Unused Resources Capacity…

A: Income statement is a financial statement that records all the expenses and income of the company…

Q: A corporation earns $8.30 per share before taxes. The corporate tax rate is 39%, the personal tax…

A: Introduction: The payout ratio is a financial metric that expresses as a percentage of total…

Q: SunnySide (Pty) Ltd (“SunnySide”) is a cap manufacturer based in sunny Mpumalanga. Their financial…

A: Here discuss about the details of the cost model which are applicable for the purchase of property…

Q: tes The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its…

A: Working Note :— Contribution = Selling price per unit - Variable Cost per unit Direct materials…

Q: The present worth of a multiyear investment with all positive cash flows (incomes) other than the…

A: minimum acceptable rate of return (MARR), is the minimum required rate of return or target rate that…

Q: Bridgeport AG unda €175.000, 4-year 95% note at face value to Flint Hills Bank on January 1, 2022,…

A: A note payable can be described as a written commitment which is paid by promissory to the lender of…

Q: A. You work as a manager at Fynn & Partners, an audit firm that provides various services to audit…

A: During the audit engagement of any client, the auditors gathers the audit evidence by performing…

Q: Insight Company's standard factory overhead rate is $3.76 per direct labor hour (DLH), calculated at…

A: The variance is the difference between actual data and the standard cost of production. Variable…

Q: Required: 1. Prepare Comparative Statement 2017, 2016 & 2015 (Increase, Decrease)

A: Comparative balance sheet shows the comparison of financial position with other years in both…

Q: Caesar Company uses a sales journal, purchases journal, cash receipts journal, cash payments…

A: Sales Journal - Sales Journal is a table that only includes sales related transactions and cost of…

Q: Under what conditions are the results from using the direct method of allocation the same as those…

A: Allocation of Cost = Cost allocation is a Cost accounting Process in which organisation identify the…

Q: Analyze the capital gains and the growth in share price for the five year period.

A: Total equity shares = 4,000,000 / 0.40 = 10,000,000 shares Right shares = (10,000,000 / 4) * 2 =…

Q: At 40000 direct labor hours, the flexible budget for indirect materials totaled $47000. If $49000…

A: Given information, Direct labor hours = 40000 Budget for indirect material = $47000 Indirect…

Q: What is the depreciation deduction, using 200% DB method, after year 2 for an asset that costs…

A: Lets understand the basics. 200% DB method is also known as double declining balance method. In this…

Q: Discuss why in many liability firms, the managers do not receive a fixed payment for their work, but…

A: Fixed payment An installment loan with a fixed-rate payment has an interest rate that won't…

Question

100%

Compute the inventory turnover ratio based on the following data:

Sales revenue $275,000

Cost of goods sold 168,000

Beginning inventory 35,000

Ending inventory 45,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Compute Altoona Companys (a) inventory turnover ratio and (b) number of days sales in inventory ratio, using the following information.
Compute Westtown Companys (A) inventory turnover ratio and (B) number of days sales in inventory ratio, using the following information.
Calculate the cost of goods sold dollar value for A67 Company for the month, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Cost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 20Y8: Estimated returns of current year sales 11,600 Inventory, May 1, 20Y7 380,000 Inventory, April 30, 20Y8 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 a. Prepare the Cost of goods sold section of the income statement for the year ended April 30, 20Y8, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 20Y8. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of the merchandise sold on October 29, and (c) the inventory on October 31.
Beginning inventory, purchases, and sales for WCS12 are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the October 22 purchase, (b) the cost of goods sold on October 29, and (c) the inventory on October 31.
Use the weighted-average (AVG) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the May 23 purchase, (b) the cost of the merchandise sold on May 26, and (c) the inventory on May 31.
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
Analyzing Inventory The recent financial statements of McLelland Clothing Inc. include the following data: Required: 1. Calculate McLellands gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the FIFO inventory costing method. Be sure to explain what each ratio means. 2. Calculate McLellands gross profit ratio (rounded to two decimal places), inventory turnover ratio (rounded to three decimal places), and the average days to sell inventory (assume a 365-day year and round to two decimal places) using the LIFO inventory costing method. Be sure to explain what each ratio means. 3. CONCEPTUAL CONNECTION Which ratios-the ones computed using FIFO or LIFO inventory values-provide the better indicator of how successful McLelland was at managing and controlling its inventory?