General Accounting question A retailer has $50 million annual sales withaverage inventory of $12 million in COGS. If annualinventory holding cost is 15% of COGS value perunit, calculate total annual inventory holdingcosts.

Step 1: Define Inventory Holding CostInventory holding cost refers to the total cost incurred for…

Answered: A retailer has $50 million annual sales…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 14P

See similar textbooks

Similar questions

A retailer has annual sales of $500,000 and an average finished-goods inventory of$15,000. If the retailer sells each unit for an average of $25 and purchases the units for$15, what is its annual inventory turnover?
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?
What is the inventory conversion period for O'Brian's if it has sales of $320,000, an average inventory of $5,333 and a cash conversion cycle of 20 days? Assume the cost of sales is 55% of sales.
Consider a firm with an annual net income of $30 million, revenue of $70 million and cost of goods sold of $35 million. If the balance sheet amountsshow $3.5 million of inventory and $800,000 of property, plant & equipment, what is the inventory turnover?
Calculate the inventory-to-sale conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000. 240 days 180 days 90 days 60 days
On January 1, 2020, the merchandise inventory of Shoesmith Corp. was $600,000. During 2020, Shoesmith purchased $1,150,000 of merchandise and recorded sales of $1,350,000. The gross profit rate on these sales was 35%. What is the estimated dollar value of the inventory at December 31? Answer:
Endor Company begins the year with $90,000 of goods in inventory. At year-end, the amount in inventory has increased to $103,000. Cost of goods sold for the year is $600,000. Compute Endor's inventory turnover and days' sales in inventory. Assume there are 365 days in the year. Inventory Turnover Choose Numerator: Choose Denominator: Inventory Turnover Inventory Turnover times Days' Sales in Inventory Choose Numerator: Choose Denominator: Days = Days' Sales in Inventory 365 Days' sales in inventory 365 days
A company wishes to establish an EOQ for an item for which the annual demandis $800,000, the ordering cost is $32, and the cost of carrying inventory is 20%.Calculate the following:a. The EOQ in dollars.b. Number of orders per year.c. Cost of ordering, cost of carrying inventory, and total cost.d. How do the costs of carrying inventory compare with the costs of ordering?
Inventory turnover at GTM Inc.:The average inventory levels at GTM are $1,200,000 and $2,500,000, for raw materials and WIP respectively. In addition, the average finished goodsinventory is $3,750,000, and cost of goods sold for the current year are expected to be about $22 million.What is the inventory turnover for GTM Inc.?
An entity reported operating expenses other than interest expense for the year at 40% of cost of goods sold butonly 20% of sales. Interest expense is 5% of sales. The amount purchased is 120% of cost of goods sold. Endinginventory is twice as much as the beginning inventory. The net income for the year is P2,100,000. The incometax is 30%.Question 1: What is the amount of sales for the year?a. 10,000,000 c. 18,000,000b. 15,000,000 d. 12,000,000Question 2: What is the amount of purchases?a. 6,000,000 c. 3,000,000b. 7,200,000 d.3,600,000
Old Rose Company's pricing structure has been established to yield a gross margin of 30%. The following data pertain to the year ended December 31, 2019: Sales - P2,200,000 Inventory, January 1 2019 - 1,000,000 Purchases - P800,000 Freight cost on purchases - P20,000 Freight cost on merchandise sold - P30,000 Inventory inside the company's warehouse, per actual account on December 31, 2019 - P160,000 Credit Memo issued to customers for goods returned and received - P50,000 Credit memos issued to customers for merchandise to be returned, January 2, 2020 - P40,000 Sales Discount - P100,000 Old Rose Company is satisfied that all sales and purchases have been fully and properly recorded. REQUIRED: How much would Old Rose Company reasonably estimate as a shortage in inventory at December 31, 2019?
GREEN Enterprises reported the following information for the current year: Inventory, January 1 - P2,300,000; Purchases - 27,105,000; Purchase returns and allowances - 520,000; Sales returns and allowances - P692,000; Inventory, December 31 - 2,470,000. Gross profit rate on net sales is 20%. What is the amount of gross sales for the current year?

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS

A retailer has $50 million annual sales with average inventory of $12 million in COGS. If annual inventory holding cost is 15% of COGS value per unit, calculate total annual inventory holding costs.