A company made sales of $34,450 million in 2014. The cost of goods sold for the year totaled $11,200 million. At the end of 2013, Company's inventory stood at $1,700 million, and A company ended 2013 with an inventory of $1,400 million. Compute Company's gross profit percentage and rate of inventory turnover for 2014. (Financial Accounting)

A company made sales of $34,450 million in 2014. The cost of goods sold for the year totaled $11,200 million. At the end of 2013, Company's inventory stood at $1,700 million, and A company ended 2013 with an inventory of $1,400 million. Compute Company's gross profit percentage and rate of inventory turnover for 2014. (Financial Accounting)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 15BEA: Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000....

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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?
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