Need help with this accounting question A company had an average inventory last year of $203,000 and itsinventory turnover was 6. If sales volume and unit cost remain the samethis year as last and inventory turnover is 8 this year, what will averageinventory have to be during the current year?

Step 1: Define Inventory TurnoverInventory Turnover is a financial ratio that measures how…

Answered: A company had an average inventory last…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 14P

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Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
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?
Assume a firm's inventory level of $11,500 represents 33 days of sales. What is the annual cost of goods sold? and what is the inventory turnover ratio?
A firm with sales of $500,000 has average inventory of $200,000. T he industry average for inventory turn over is four time a year. What would be the redution in inventory if the firm were a turnover comparable to the industry average. please show all calculation
If your cost of goods sold for the year was $825,000, with beginning inventory of $240,000 and ending inventory of $260,000, what is the inventory turnover ratio?
Consider the following data about the Company: How much is the Company’s cost of goods sold during the year?
Last year, Jumpin' Trampolines (JT) had a quick ratio of 1.0, a current ratio of 1.8, an inventory turnover of 3.5, total current assets of $67,500, and cash and equivalents of $15,00. If the cost of goods sold equaled 70 percent of sales, what were JT's annual sales and DSO?
7. Charles Inc. has an ending inventory of $423,425, and the cost of goods sold for the year just ended was $5,231,425. What is the inventory turnover? The days’ sales in inventory? How long on average did a unit of inventory sit on the shelf before it was sold?
(a) The current ratio of a company is 5:1 and its acid-test ratio is 1:1. If the inventories and prepaid items amount to $488,000, what is the amount of current liabilities? Current liabilities $ (b) A company had an average inventory last year of $206,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year? Average inventory $ Current ratio (c) A company has current assets of $99,000 (of which $44,000 is inventory and prepaid items) and current liabilities of $44,000. What is the current ratio? What is the acid-test ratio? If the company borrows $15,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be? (Round answers to 2 decimal places, e.g. 2.50.) Acid-test ratio 122,000 New current ratio New acid-test ratio 154,500 2.25 :1 :1 :1 Current ratio after the payment of the dividend :1 (d) A…
Assume a firm's inventory level of $11,000 represents 32 days' sales. Required: a. What is the annual cost of goods sold? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to whole number.) b. What is the inventory turnover ratio? (Round your answer to 2 decimal places.) Annual cost of goods sold Inventory turnover ratio times per year
Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is P8,500, then what does that imply for the cost of goods sold during the year? (round to the nearest peso)
What is the inventory period for a firm with an annual cost of goods sold of P5million, P1.2 million in average inventory, and a cash conversion cycle of 75days?

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A company had an average inventory last year of $203,000 and its inventory turnover was 6. If sales volume and unit cost remain the same this year as last and inventory turnover is 8 this year, what will average inventory have to be during the current year?