Help Assume 007 Inc. made sales of $964.4 million during 2016.Cost of goods sold for the year totaled $655.3 million. At theend of 2015, 007 Inc.'s inventories stood at $200.7 million,and the company ended 2016 with inventory of $240 million.Compute 007's gross profit percentage and rate of inventoryturnover for 2016.

Step 1: Define Profit MarginsThe entities registered with stock bourses are required to file…

Answered: Assume 007 Inc. made sales of $964.4…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter5: Inventories And Cost Of Goods Sold

Section: Chapter Questions

Problem 5.8MCP

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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?
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.
Spritzer Company made sales of $29,750 million in 2018. The cost of goods sold for the year totaled $11,900 million. At the end of 2017, Malt's inventory stood at $1,200 million, and Spritzer ended 2018 with an inventory of $1,600 million. Compute Malt's gross profit percentage and rate of inventory turnover for 2018.
In its 2015 annual report, Gap Inc. reported inventory of $1,889 million on January 31, 2015, and $1,928 million on February 1, 2014, cost of goods sold of $10,146 million for 2015, and net sales of $16,435 million. Compute Gap’s inventory turnover and the average days to sell inventory for the fiscal year 2015.
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Compute 007s gross profit percentage and rate of inventory turnover for 2016
The following data are from the income statements of Haskin Company. Year 2017 2016 Sales revenue $6,420,000 $6,420,000 Beginning inventory 940,000 860,000 Purchases 4,340,000 4,661,000 Ending inventory 1,020,000 940,000 Answer the following questions: Compute for each year (1) the inventory turnover and (2) the days in inventory? What conclusions concerning the management of the inventory can be drawn from these data?
What is the average inventory on this accounting question?
Anka, Inc. provided the following data for 2016 and 2017: Inventory December 31, 2015 $404,800 December 31, 2016 $571,200 December 31, 2017 $365,000 Cost of goods sold 2016 $1,284,000 2017 $1,448,000 Gross margin $680,000 $820,000 2016 2017 (a) Calculate the inventory turnover ratio for 2016 and 2017. (b) Calculate the gross margin return on inventory investment for 2016 and 2017.
General Account
For the period from 2016 through 2016, the Charlie Company had net sales of $500,000 and a gross profit of $200,000. During the first quarter of 2018, the company made purchases of $19,500 and recorded sales of $47,500. The inventory value at the beginning of the year was 15,500. What is the estimated cost of Charlie's inventory on March 31, 2018, using the gross profit method?

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