Brief Exercise 6-16 Calculate inventory ratios (LO6-7)Use the following information:Net sales$150,000Cost of goods soldBeginning inventoryEnding inventory100, 00035,00025,000a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.)Inventory turnover ratiotimesb. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1decimal place.)Average days in inventory| daysc. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)Gross profit ratio%

Solution Formula used Inventory turnover ratio = cost of goods sold/ average inventory…

Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) inventory turnover ratio times . Calculate the average days in inventory. (Assume 365 days in a year. Round your intermedi ecimal place.) Average days in inventory days

Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.) inventory turnover ratio times . Calculate the average days in inventory. (Assume 365 days in a year. Round your intermedi ecimal place.) Average days in inventory days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Solve for the missing information designated by "?" in the following table. (Use 365 days in a year.…

A: Cost of goods sold is the amount of money incurred by the entity on the making of the goods sold in…

Q: Just show the answer no need to show the work Given the following, determine the gross of return…

A: Gross return is the total rate of return on an investment before the deduction of any fees,…

Q: From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent…

A: Retail inventory method refers to an accounting method which is used by the companies to compute the…

Q: Use the following information for the Exercises below. (Algo) [The following information applies to…

A: Lets understand the basics. There are two types of analysis are made by the entity which are, (1)…

Q: Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…

Q: Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is…

A: Average age of the inventory is described as the number of days the company requires to sell the…

Q: None

A: Step 1: Calculation of Days in Inventory (DII) We can calculate the Days in Inventory (DII) using…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventory turnover measures how quickly stock is sold, used up, and replaced. The cost of products…

Q: I know that the number of days sales In inventory is the average inventory divided by the avg daily…

A: Inventory value is calculated as the total cost of your inventory at the end of each accounting…

Q: Calculate the average inventory (in $) and inventory turnover ratio for the given company. (Round…

A: The inventory turnover ratio is the financial ratio formula which is used to determine the number of…

Q: Days in inventory is found by Group of answer choices dividing inventory by cost of goods sold per…

A: The day in inventory is a financial ratio that indicates the average time in days that a company…

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the…

A: Ending inventory refers to value of goods readily available for sale and held by company at end of…

Q: SCC Company reported the following for the current year: $ 56,000 47,560 2,800 8,800 Net sales Cost…

A: Ratio analysis helps to analyze the financial statements of the company. The management can take…

Q: The financial statements of Blossom, Inc's. 2025 annual report disclose the following information:…

A: Inventory turnover ratio :Inventory turnover ratio indicates the demand for the product &…

Q: Inventory Analysis A company reports the following: Cost of goods sold $256,230 Average inventory…

A: The inventory turnover ratio tells about the efficiency of the company to convert its inventory into…

Q: Use the following information: Net sales $ 180,000 124,000

A: Gross profit is calculated as difference between sales and cost of goods sold. Gross profit = Sales…

Q: Suppose this information is available for PepsiCo, Inc. for 2025, 2024, and 2023. (in millions)…

A: Days in Inventory - Days in Inventory ratios show the time required to sell the inventory lying in…

Q: The cost of goods sold computations for Sheridan Company and Windsor Company are shown below.…

A: Inventory turnover ratio also commonly referred to as stock turnover ratio indicates the extent to…

Q: You have the following information for Waterway Industries for the month ended October 31, 2022.…

A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…

Q: Compute the accounts receivable turnover in days. fill in the blank 4 days 5. Compute the…

A: Accounts receivable turnover in days is the average number of days within which collection is…

Q: From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent…

A: Ending inventory is the inventory that an entity has, at the end of a period. It is reported in the…

Q: You have been advised that a business has an inventory turnover of 8.49. What is the average number…

A: We have the following information: Inventory turnover is 8.49 To determine the average number…

Q: Question: The quick ratio is 0.81. Current assets are $103,000 and current liabilities are $79,000.…

A: Step 1: Introduction to the Inventory:Inventory can be defined as a current asset because it can be…

Q: Determine the inventory turnover for both companies. Round all calculations to one decimal place.…

A: Inventory turnover :— It is calculated by dividing cost of goods sold by average inventory. Day's…

Q: The average collection period determines the number of a.days it takes to sell the inventory.…

A: Average collection period is the time taken by an entity to collect from its accounts receivables…

Q: Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is…

A: Inventory days is a concept in costing that shows how much time it takes the firm to sale its…

Q: Solve for the missing information designated by "?" in the following table. (Use 365 days in a year.…

A: DAYS SALES IN INVENTORYDays Sales in Inventory is the ratio between 365 Days & Inventory…

Q: A company reports the following: Cost of goods sold $585,825 Average inventory 78,110…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: Required: Complete the table below to estimate the LIFO cost of ending inventory and cost of goods…

A: Part 2: Explanation:Step 1: Calculate the ending inventory at costTo estimate the ending inventory…

Q: e the estimated inventory at May 31, assuming that the gross profit is 25% of cost. (Round percenta…

A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…

Q: Inventory turnover and number of days' sales in inventory Financial statement data for years ending…

A: INVENTORY TURNOVER RATIOThe inventory turnover is computed by dividing the cost of goods sold by the…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

Q: A company has an average age of inventory (AAI) 55 days; average collection period (ACP) 20 days and…

A: The number of days required from purchasing raw material till the goods are sold and cash is…

Q: Project the average inventory balance in Year X and use it to compute the implied ending inventory…

A: The term sales revenue represents gross earnings generated by selling goods and services in the…

Q: What is the inventory turnover if COGS is $10,000, beginning inventory was 200, and ending inventory…

A: Inventory Turnover:This is a financial metric used to quantify the number of times inventory is used…

Q: Operating cycle is measured as: Multiple Choice

A: OPERATING CYCLE

Q: The Zone, Inc. has an ROE of 0.10, no debt, and a Total Asset Turnover of 2.8x. What is the Zone's…

A: Net profit margin is a measure of the profitability of a company. Days' Sales in Inventory is the…

Q: Solve for the missing information designated by "?" in the following table. (Use 365 days in a year.…

A: Inventory turnover ratio measures how many times a company's inventory is sold and replaced within a…

Q: Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost,…

A: Inventory turnover is a measure that evaluates the efficiency of the entity. It means how…

Q: Riverbed Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Sales revenue $998,600Less: Sales returns$76,500Net sales revenue ($998,600 - $76,500)$922,100Less:…

Q: Compute the days’ sales in inventory for International Paper and Walmart. Round to nearest day.…

A: Ratio analysis s helps to analyze the financial statements of the company. Management can make…

Q: Use the following information: Net sales Cost of goods sold $235,000 168,000 52,000 42,000 Beginning…

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: Some of the information found on a detail inventory card for Crane Inc. for the first month of…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: Compute the inventory at September 30 on each of the following bases. Assume that perpetual…

A: FIFO (First-In, First-Out) and LIFO (Last-In, First-Out) are methods of inventory valuation. FIFO…

Q: (a1) * Your answer is incorrect. Compute for each year the inventory turnover. (Round answers to 1…

A: Inventory Turnover Ratio :— It is the ratio of cost of goods sold and average inventory. Days in…

Q: Accounts-receivable Jan. 1 P100,000 Accounts-receivable Dec. 31 P150,000 Inventory-Jan. 1…

A: Average collection period=Jan 1, receivables+Dec 31, receivables2Net sales×365=P100,000+P150,0002P…

Q: Based on the following information compute (a) inventory turnover, (b) average daily cost of…

A: Inventory turnover ratio refers to number of times inventory is sold or used in a given period.

Question

Brief Exercise 6-16 Calculate inventory ratios (LO6-7)
Use the following information:
Net sales
$150,000
Cost of goods sold
Beginning inventory
Ending inventory
100, 000
35,000
25,000
a. Calculate the inventory turnover ratio. (Round your answer to 1 decimal place.)
Inventory turnover ratio
times
b. Calculate the average days in inventory. (Assume 365 days in a year. Round your intermediate calculations and final answer to 1
decimal place.)
Average days in inventory
| days
c. Calculate the gross profit ratio. (Round your answer to 2 decimal place.)
Gross profit ratio
%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

calculate number of days sales in inventory
Saved At December 31 current Yr 1 Yr Ago 2Yrs Ago ASsets $434,455 $ 36, 256 62,900 84,00 9,044 Cash S 29,476 Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 89, 500 114, 000 9, 492 267, 318 51, 400 56, 000 4, 028 249,072 226,016 Total assets $509, 76 $ 439, 471 $ 373, 700 Liabilities and Equity Accounts payable Long -term notes payable secured by nortgages on plant assetS Connon stock, $10 par value Retained earnings $124, 398 $ 72,765 S 46, 342 93, 923 162, 500 126, 965 $509, 786 99, 057 162, 500 105, 129 $ 439, 471 $ 373, 700 80,936 162, 500 81,922 Total liabilities and equity The company's income statements for the Current Year and 1 Year Ago, follow. Assume that all sales ore on credit: 1 YE Ago S 522, 970 For Year Ended Decenber 31 Sales cost of goods sold other operating expenses Interest expense Income tax expense Total costs and expenses current Yr $ 662, 722 404, 260 205, 444 11, 266 8,615 $ 339,931 132, 311 12,028 7,845 629, 585 S 33, 137…
Solve for the missing information designated by "?" in the following table. (Use 365 days in a year. Round the inventory turnover ratio to one decimal place before computing days to sell. Round days to sell to one decimal place.) Case a. b. C. $ $ Beginning Inventory Purchases 200 $ 300 900 Cost of Goods Sold $ $ $ 900 $ 1,600 1,400 $ Ending Inventory 200 100 Inventory Turnover Ratio 8.0 Days to Sell 26.1
Solve for the missing information designated by "?" in the following table. (Use 365 days in a year. Round the inventory turnover ratio to one decimal place before computing days to sell. Round days to sell to one decimal place.) Case a. b. C. $ $ Beginning Inventory Purchases 112 $ 224 SA Cost of Goods Sold 1,120 $ $ $ 8.0 Days to Sell 36.5
If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory under (1) FIFO. (2) LIFO and (3) Average-cost? (Round average cost per unit to 4 decimal places, e.g. 2.7621 and final answers to 0 decimal places, e.g. 6,548.) Ending Inventory $ (1) FIFO S (2) LIFO $ (3) Average-cost
Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise. Estimating sales returns On December 31, Jack Photography Supplies estimated that approximately 2% of merchandise sold will be returned. Sales Revenue for the year was $80,000 with a cost of $48,000. Journalize the adjusting entries needed to account for the estimated returns.
Accounts Debit Credit Cash $24,300 Accounts Receivable 42,500 Allowance for Uncollectible Accounts $2,700 Inventory 42,000 Land 79,600 Accounts Payable 29,200 Notes Payable (8%, due in 3 years) 42,000 Common Stock 68,000 Retained Earnings 46,500 Totals $188,400 $188,400 The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,050 units for $115,500 on account ($110 each). January 8 Purchase 1,150 units for $132,250 on account ($115 each). January 12 Purchase 1,250 units for $150,000 on account ($120 each). January 15 Return 160 of the units purchased on January 12 because of defects. January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $529,000 from customers on accounts receivable. January 24 Pay $359,000 to inventory suppliers on accounts payable. January…
How much is the markdown and it's markdown rates based on original selling price if an item has an original selling price of P420.00 and new selling price of P380.00?show computation in two decimal places
Please do not give solution in image format thanku
Excerpts from Karla Salons' December 31, 20x2 and 20x1, financial statements are presented below: 20x2 Accounts receivable Merchandise inventory Net sales Cost of goods sold. Total assets Total shareholders' equity Net income Multiple Choice What is Karla's inventory turnover for 20x2? (Round your answer to 2 decimal places.) O O 3.90. $ 42,000 29,000 213,300 116,000 427,000 242,000 34,000 4.00. 20x1 $ 37,000 37,000 200,000 109,000 406,000 226,000 29,000
Oriole Company's record of transactions concerning part WA6 for the month of September was as follows. Purchases September 1 (balance on hand) 3 (a1) نا 12 292 2 16 300 200 @ 300 @ 300 @ 500 @ 300 @ $13.00 Average-cost per unit $ @ 13.10 13.25 13.30 13.30 13.40 Sales September 4 17 27 30 400 600 300 200 Calculate average-cost per unit. Assume that perpetual inventory records are kept in units only. (Round answer to 2 decimal places, eg. 2.76.)
If Inventory on 1.1.2020 was OMR 240,000, Inventory on 31.12.2020 was OMR 320,000 and cost of goods sold was OMR 900,000, the Inventory conversion period will be: a. 113.55 days b. 129.78 days c. None of these d. 97.33 days