Consider the following details about a firm from the past year. Assume that this sample time period provides a good estimate for the firm's cycles. What is its Inventory Period? March 1 - Acquire Inventory March 20 - Pay $25,000 for Inventory April 22 - Sell Inventory on Credit May 23 - Collect $40,000 for Sale on Credit

Consider the following details about a firm from the past year. Assume that this sample time period provides a good estimate for the firm's cycles. What is its Inventory Period? March 1 - Acquire Inventory March 20 - Pay $25,000 for Inventory April 22 - Sell Inventory on Credit May 23 - Collect $40,000 for Sale on Credit

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 8PEA: Financial statement data for years ending December 31 for Holland Company follow: a. Determine the...

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Financial statement data for years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
Financial statement data for years ending December 31 for Tango Company follow: a. Determine the inventory turnover for 20Y7 and 20Y6. b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
Under the periodic inventory system, what account is debited when an estimate is made for sales made this year, but expected to be returned next year? (a) Sales Returns and Allowances (b) Merchandise Inventory (c) Customer Refunds Payable (d) Sales
Under the periodic inventory system, what account is credited when an estimate is made for sales made this year, but expected to be returned next year? (a) Merchandise Inventory (b) Customer Refunds Payable (c) Sales (d) Sales Returns and Allowances
Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 36! days a year. a. Inventory turnover b. Number of days' sales in inventory days
Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365-day year. Sales on account during year $501,145 211,416 Cost of goods sold during year Accounts receivable, beginning of year 41,636 Accounts receivable, end of year 49,650 Inventory, beginning of year 34,506 Inventory, end of year 39,238 Do not round interim calculations. Round your final answer up to the nearest whole day. Oa. 64 Ob. 365 Oc. 6 Od. 79
The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $788,400 $827,800 Beginning inventories 57,564 39,692 Cost of goods sold 394,200 459,900 Ending inventories 52,164 57,564 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 days b. The inventory position of the business has improveddeteriorated . The inventory turnover has increaseddecreased , while the number of days' sales in inventory has increaseddecreased .
Based on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year. Sales on account during year $512,919 Cost of merchandise sold during year 196,085 Accounts receivable, beginning of year 41,748 Accounts receivable, end of year 52,731 Merchandise inventory, beginning of year 33,126 Merchandise inventory, end of year 41,076 Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number. a.138 days b.76 days c.62 days d.69 days
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