Get solution this accounting question not use ai During the current year, Apex Hardware Inc. had net sales of $600million, a cost of goods sold (COGS) of $300 million, an averageaccounts receivable of $70 million, and an average inventory of $50million. Assuming a 365-day year, the average number of days requiredfor Apex Hardware Inc. to sell its inventory is:a. 60.8 daysb. 91.3 daysc. 50 daysd. 45.6 days

Step 1: Define Inventory Turnover and Days in InventoryInventory Turnover measures how many times a…

Answered: During the current year, Apex Hardware…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 14P

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Gibson's has sales for the year of $538,900, cost of goods sold equal to 73 percent of sales, and an average inventory of $78,300. The profit margin is 7 percent and the tax rate is 21 percent. How many days, on average, does it take the company to sell an inventory item? Assume 365 days per year.
Liberty Solutions Inc. has annual sales of $125 million, inventory valued at $35 million, and $18 million in accounts receivable. Determine the Inventory Turnover Ratio (ITR) and Days Sales Outstanding (DSO), assuming an industry average of 90 days.
Last year, Wilson's had credit sales of $927,000 and cost of goods sold of $762,000. The beginning of the year inventory was $138,000 and the end of the year inventory was $154,300. If the accounts receivables average $87,400, what is the operating cycle (using average inventories during the year)?
The average days of account payable?
WW Co has a current ratio of 2. Receivables are $3 million and current liabilities are $2 million. What are inventory days if cost of sales is $10 million per annum?
If a company has average accounts receivable of $60,000 and annual sales of $720,000, what is the DSO, assuming a 360-day year?
Zane Corporation has an inventory conversion period of 64 days,an average collection period of 28 days, and a payables deferral period of 41 days.a. What is the length of the cash conversion cycle?b. If Zane’s annual sales are $2,578,235 and all sales are on credit, what is the investmentin accounts receivable?c. How many times per year does Zane turn over its inventory? Assume that the cost ofgoods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio.
Beckenworth had cost of goods sold of $9,921 million, ending inventory of $2,589 million, and average inventory of $2,015 million. Its days' sales in inventory equals: (Use 365 days a year.)
Libscomb Technologies' annual sales are $5,790,872 and all sales are made on credit, it purchases $3,221,342 of materials each year (and this is its cost of goods sold). Libscomb also has $539,653 of inventory, $498,477 of accounts receivable, and $416,602 of accounts payable. Assume a 365 day year. What is Libscomb’s Inventory Period (in days)?
For its most recent year, a company had Sales (all on credit) of $830,000 and a Cost of Goods Sold of $525,000. At the beginning of the year, its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year, its Accounts Receivable were $86,000 and its Inventory was $110,000. The inventory turnover ratio for the year was: a. 4.8 b. 5.0 c. 7.9
Libscomb Technologies' annual sales are $6,997,444 and all sales are made on credit, it purchases $3,879,449 of materials each year (and this is its cost of goods sold). Libscomb also has $530,851 of inventory, $490,754 of accounts receivable, and $417,441 of accounts payable. Assume a 365 day year. What is Libscomb’s Receivables Turnover?
Crockett Electronics has a quick ratio of 2.00x, $30,150 in cash, $16,750 in accounts receivable, some inventory, total current assets of $67,000, and total current liabilities of $23,450. The company reported annual sales of $300,000 in the most recent annual report. Over the past year, how often did Crockett Electronics sell and replace its inventory? 08.01x O 16.42x O 2.86x O 14.93x

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