15. Farrell's Window Supply has seen an increase in sales, but the company is concerned with its inventory management. Has the increase in sales caused the company's ability to manage inventory effectively to decrease? Support your answer by finding the changes in inventory turnover and number of days' sales in inventory. Round ratios to one decimal place. Inventory: Beginning of year End of year Purchases of inuentoni 20Y6 $350,900 325,400 330 600 2015 $352,300 350,900 335 300 qual

15. Farrell's Window Supply has seen an increase in sales, but the company is concerned with its inventory management. Has the increase in sales caused the company's ability to manage inventory effectively to decrease? Support your answer by finding the changes in inventory turnover and number of days' sales in inventory. Round ratios to one decimal place. Inventory: Beginning of year End of year Purchases of inuentoni 20Y6 $350,900 325,400 330 600 2015 $352,300 350,900 335 300 qual

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Inventory Management Williams & Sons last year reported sales of $26 million, cost of goods sold (COGS) of $20 million, and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 5 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer in dollars. For example, an answer of $1.23 million should be entered as 1,230,000,000. Round your answer to the nearest dollar. $
Another way to look at the concept of inventory turnover is by measuring sales per square foot. Taking the average inventory at retail and dividing it by the number of square feet devoted to a particular product will give you average sales per square foot. When you multiply this figure by the inventory turnover rate, you get the annual sales per square foot. It is important to know the amount of sales per square foot your merchandise is producing, both on average and annually. These figures should be tracked monthly and compared with industry standards for businesses of similar size and type. You own a large multi product electronics store in a regional mall. The store has 10,200 square feet of selling space divided into five departments. (a) From the table below, calculate the average and annual sales (in $) per square foot. Then calculate the annual sales (in $) for each department and the total sales (in $) for the entire store. (Round your average and annual sales per square…
E7-14 (Algo) Analyzing and Interpreting the Inventory Turnover Ratio LO7-5 Jetz is the leading manufacturer of personal computers. In a recent year, it reported the following in dollars in millions: Net sales revenue Cost of sales Beginning inventory Ending inventory $ 76,241 58,944 1,770 1,930 Required: Determine the inventory turnover ratio and average days to sell inventory for the current year. (Use 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.) Inventory turnover Average days to sell inventory days
Maya company has seen slow but steady growth over the past 10 years. Maya company started small, and all of the employees were family members. However, the business is now big enough that it is important to start setting up a more sophisticated internal control structure, including segregation of duties. What are the three specific functions that must be kept separate?
Give me correct answer with explanation.h