Botica Heaven has a total annual sale of PhP 40 M and is in operation with an inventory value of Php 3.2M in January 2020, and Php 1.5 M in December 2020. Calculate for the inventory turnover. Inventory Turnover = 40 M/ 1.5 M – 3.2 M Inventory Turnover = 40 M - (3.2 M/ 1.5 M) Inventory Turnover = 40 M/ 3.2 M – 1.5 M Inventory Turnover = 3.2 M/ 1.5 M – 40 M   Which of the following statements is TRUE? The inventory is sold and replenished 2 times in a year. The inventory is sold and replenished 4 times a year. The inventory may be sold and replenished anytime during the year. The inventory is sold and replenished 1.96 times a month.   What is the implication of Botica Heaven's inventory?  The purchase orders are released anytime. The schedule of purchase orders are released twice a month. Purchase orders are released once to four times a month. The schedule of the release of purchase orders is varied.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Botica Heaven has a total annual sale of PhP 40 M and is in operation with an inventory value of Php 3.2M in January 2020, and Php 1.5 M in December 2020.

Calculate for the inventory turnover.

Inventory Turnover = 40 M/ 1.5 M – 3.2 M

Inventory Turnover = 40 M - (3.2 M/ 1.5 M)

Inventory Turnover = 40 M/ 3.2 M – 1.5 M

Inventory Turnover = 3.2 M/ 1.5 M – 40 M

 

Which of the following statements is TRUE?

The inventory is sold and replenished 2 times in a year.

The inventory is sold and replenished 4 times a year.

The inventory may be sold and replenished anytime during the year.

The inventory is sold and replenished 1.96 times a month.

 

What is the implication of Botica Heaven's inventory? 

The purchase orders are released anytime.

The schedule of purchase orders are released twice a month.

Purchase orders are released once to four times a month.

The schedule of the release of purchase orders is varied.

 

Which of the following is TRUE regarding the stocks of Botica Heaven?

The stocks of the drugstore are held in the shelves for 15.5 days only.

The stocks are held in the shelves only for 23.5 days.

The stocks are held for approximately 2 months.

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education