The following balances come from the financial statements of a company:Sales revenueAccounts receivableBeginning inventoryEnding inventoryNet purchasesSales returnsSales discount$ 850,000280,00050,00030,000460,00050,00020,000Given this information, what is the company's inventory turnover ratio and average days in inventory? OO16.0 times; 23 days.12.0 times; 30 days.28.33 times; 13 days.21.25 times; 17 days.EJhin

INVENTORY TURNOVER RATIO Inventory Turnover Ratio is the Ratio Between Cost of Goods Sold &…

Answered: 16.0 times; 23 days. 12.0 times; 30…

Business

Accounting

16.0 times; 23 days. 12.0 times; 30 days. 28.33 times; 13 days. 21.25 times; 17 days. Stm

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: If you deposit $150 in an account with an APR of 6% and continuous compounding, the balance after 2…

A: Information Provided: Principal = $150 APR = 6% Time = 2 years

Q: Complete the following without using Table 12.1. Principal $575, Time 1 year, Rate 4%, Compounded…

A: Calculation of period used: Answer: Number of periods compounded is 4. Given information: Principal…

Q: Use the present value table to complete: (Round the "PV factor" to 4 decimal places and final answer…

A: Given, Future amount = $11,000 Number of periods = 6 years*4 Number of periods = 24 Rate = 12%/4…

Q: Money is invested at 11.94% p.a. compounded semi-annually for 43 months. What is the numerical value…

A: Part 2: Explanation:Step 1: Determine the effective interest rate per compounding period.Given that…

Q: Determine the present values if OMR5,000 is received in the future (i.e., at the end of each…

A: The time value of money is used for computing the present and the future values of a given sum of…

Q: Complete the chart. (Round to two decimal places as needed.) Period Principal Annual Rate 4% 7%…

A: Time value of money is a concept where interest component for time period is considered. This…

Q: Use the following information for questions 1 through 6. On January 1, 2015, Yancey, Inc. signs…

A: A sales-type lease is a type of lease agreement that combines elements of both a sale and a lease.…

Q: In how many months will $1763 grow to $2438 at 5.1% p.a.? Round to one decimal.

A: Investment amount (P) = $ 1763Future value (FV) = $ 2348Interest rate (r) = 5.1%Number of years = n

Q: What is the future value of $2,000 invested at the beginning of each year for six years at 4%? a.…

A: The future worth of the investment is the amount which will be receiving in the following years that…

Q: Stated Rate (APR) Number of Times Compounded 9.7 % Quarterly 18.7 Monthly 14.7 Daily 11.7 Infinite…

A: Effective Annual Rate is the actual rate earned on any investment when the interest is earned more…

Q: Am. 106.

A: Step 1: The calculation of the years ABCD1Present ValueYearsInterest rateFuture value2 $…

Q: In how many months will $1652 grow to $2276 at 5.8% p.a.? Round to one decimal. Answer:

A: The concept of TVM refers to the interest-earning capacity of money that shows that the amount…

Q: For the first part, shouldn't ''r' be divided by 12 and 'n' multiplied by 12 seeing that interest is…

A: Annual Withdrawal After retirement = $100,000 per yearsTime after retirement = 30 YearsInterest Rate…

Q: Complete the table:

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: With an interest rate of 4 percent, the present value of $100 received three years from now is…

A: Present Value is the current price of future value which will be received in near future at some…

Q: On January 1, 2015, Yancey, Inc. signs a 10-year noncancelable lease agreement to lease a storage…

A: The concepts and standards of lease accounting specify how businesses must record and disclose…

Q: Given a monthly rate of 1%, the Annual Percentage Rate (APR) is ______ and the Effective Annual Rate…

A: Annual Percentage Rate (APR) - It is the rate that charged annually to the Investment. It is same…

Q: What would you pay for a $170,000 debenture bond that matures in 15 years and pays $8,500 a year in…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: nik.4

A: The company's minimum required rate of return is 9%. The project costs $410,000 and is expected to…

Q: The past five monthly returns for Kohls are 4.11 percent, 3.62 percent, −1.68 percent, 9.25 percent,…

A: Number of returns (n) = 5 Average return is know as arithmetic average return.

Q: How long will it take $300 to accumulate to $800 at j12 = 7%? Assume that the practical method of…

A: Future value of money is the amount being deposited and amount of compounded interest accumulated…

Q: . J12 equivalent to ji = 10.08% i. equivalent to j4 = 12% . ja equivalent to j = 9% . per month…

A: in this we have to find equivalent rate of interest.

Q: Which of the following would indicate the BEST Average Collection Period? 30 days 20 days 25 days 15…

A: Accounts receivables means those customer accounts to whom business has made credit sales on…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

The following balances come from the financial statements of a company:
Sales revenue
Accounts receivable
Beginning inventory
Ending inventory
Net purchases
Sales returns
Sales discount
$ 850,000
280,000
50,000
30,000
460,000
50,000
20,000
Given this information, what is the company's inventory turnover ratio and average days in inventory?

O
O
16.0 times; 23 days.
12.0 times; 30 days.
28.33 times; 13 days.
21.25 times; 17 days.
E
Jhin

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce Inventory Turnover Ratio

VIEW

Step 2: Cost of Goods & Average Inventory

VIEW

Step 3: Inventory Turnover Ratio & Average Days in Inventory

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 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

Find the EAR in each of the following cases. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Use 365 days in a year. Number of Times Stated Rate (APR) Compounded Effective Rate (EAR) 9.75 % Quarterly % 16.25 % Monthly % 15.75 % Daily % 11.75 % Semiannually %
Alice Longtree has decided to invest $430 quarterly for 4 years in an ordinary annuity at 8%. As her financial adviser, calculate for Alice the total cash value of the annuity at the end of year 4. (Please use the following provided Table.) (Do not round intermediate calculations. Round your answer to the nearest cent.) Future value
What is the name given to a series of multiple, equal payments when each payments will occur at the end of its time period and when the payments are expected to occur forever?
K t 1 ences Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final answers to the nearest whole dollar.) Annual Deposit Rate of Return $ $ $ $ 1,200 1,200 1,200 1,200 4% 7% 6% 9% Number of Years 10 10 30 30 Investment Value at the End of Time Period Total Amount of Investment Total Amount of Earnings
The 3-year spot rate is 6.35%, and the 1-year forward rate two years from today is 5.26%. the 2-year spot rate is closest to A. 6.8992%. B. 6.4247%. C. 3.7299%. D. 3.2124%.
JJ. 172.