Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,612,000. Dogwood had the following balances: January 1 December 31 Accounts receivable $725,000 $775,000 Inventory 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. $fill in the blank 1 2. Calculate the inventory turnover ratio. fill in the blank 2 times 3. Calculate the inventory turnover in days. fill in the blank 3 days
Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,612,000. Dogwood had the following balances: January 1 December 31 Accounts receivable $725,000 $775,000 Inventory 450,000 425,000 Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. $fill in the blank 1 2. Calculate the inventory turnover ratio. fill in the blank 2 times 3. Calculate the inventory turnover in days. fill in the blank 3 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days
Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,612,000. Dogwood had the following balances:
| January 1 | December 31 | |
| $725,000 | $775,000 | |
| Inventory | 450,000 | 425,000 |
Required:
Note: Round answers to one decimal place. Assume 365 days per year.
1. Calculate the average inventory.
$fill in the blank 1
2. Calculate the inventory turnover ratio.
fill in the blank 2 times
3. Calculate the inventory turnover in days.
fill in the blank 3 days
4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
- Based on the ratios Nikkola is performing very well.
- Based on the ratios Nikkola is not performing as expected.
- Without more detailed information on Nikkola's and its industry, it is difficult to classify these results as outstanding, poor, or somewhere in between
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