eBookShow Me HowCalculatorPrint ItemThe following data were extracted from the income statement of Keever Inc.:చేట్కకిCurrent YearPrevious YearSales$890,600$932,900Beginning inventories41,77248,482Cost of goods sold445,300518,300Ending inventories37,77241,772a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar andthe final answers to one decimal place. Assume 365 days a year.Current YearPrevious Year1. Inventory turnover2. Number of days' sales in inventory32.6 daysX daysb. The inventory position of the business has deterioratedThe inventory turnover has decreased v, while the number of days' sales in inventoryhas Increased XFeedbackTCheck My Worka.1. Divide the cost of goods sold by the average inventory. Average inventory = (Beginning inventory+ Ending inventory)- 2.a.2. Divide the average inventory by the average daily cost of goods sold.Average inventory (Beginning inventory + Ending inventory) 2.Average daily cost of goodssold cost of goods 365 days.ఆతడ( PreviousNext>Check My Work 2 more Check My Work uses remaining,

a. 1.Computation of inventory turnover: Thus, the inventory turnover of current year is 11.20 and…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: 20Y4 20Y3 Cost of merchandise sold $3,598,900 $3,015,630 Inventories: Beginning of year 593,000 589,600 End of year 648,000 593,000 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 fill in the blank 1 20Y3 fill in the blank 2 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 20Y4 fill in the blank __ days 20Y3 fill in the blank __ days
The following computations were made from Bird Company’s 2012 books Number of days sales in inventory 61 Number of days sales in trade accounts receivable 33What was the number of days in Bird’s 2012 operating cycle?a. 33b. 94c. 61d. 47
Net Sales Cost of goods sold Average accounts receivable for the year Accounts receivable at year-end Average inventory for the year Inventory at year-end $1,095,000 657,000 44,250 18,000 226,000 158,400 Required: a. Calculate the inventory turnover for 2019.
Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Υ7 20Υ6 Cost of goods sold $3,654,015 $3,830,310 Inventories: Beginning of year 737,300 708,100 End of year 817,600 737,300 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Υ7 20Y6 Inventory turnover b. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. 20Υ7 20Υ6 Number of days' sales in inventory days days C. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?
Cost of merchandise sold Inventory, end of year Inventory, beginning of the year $894,000 78,000 92,000 Determine the inventory turnover ratio and the days' sales in inventory for Castle Inc. Round to two decimal places. Use a 365-day year. Inventory turnover Days' Sales in Inventory days
Inventory Analysis The following data were extracted from the income statement of Brecca Systems Inc.: Current Year Preceding Year Sales $9,700,000 $7,175,000 Beginning inventories 420,000 400,000 Cost of goods sold 5,820,000 4,305,000 Ending inventories 550,000 420,000 a. (1). Determine for each year the inventory turnover. Round answers to one decimal place. Current year Preceding year (2). Determine for each year the days' sales in inventory. Assume there are 365 days in the year. Round intermediate calculations to the nearest whole dollar and final answers to one decimal place. Current year Preceding year days days b. What conclusions can be drawn from these data concerning the inventories?
Inventory turnover and number of days’ sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Y7 20Y6 Cost of goods sold $3,791,255 $4,079,970 Inventories: Beginning of year 773,800 737,300 End of year 839,500 773,800 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Y7 20Y6 Inventory turnover b. Determine the number of days’ sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. 20Y7 20Y6 Number of days’ sales in inventory days days c. Are the changes in inventory turnover and the number of days’ sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?
Inventory turnover and 'number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Y7 20Υ6 Cost of goods sold $3,739,790 $3,852,940 Inventories: Beginning of year 759,200 722,700 End of year 832,200 759,200 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Υ7 20Y6 Inventory turnover b. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. 20Υ7 20Y6 Number of days' sales in inventory days days c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?
Inventory Turnover and Days Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: 20Y4 2073 Cost of merchandise sold $3,598,900 $3,015,630 Inventories: Beginning of year 593,000 589,600 End of year 648,000 593,000 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Y3 b. Determine the days' sales in inventory for 204 and 20Y. Assume 365 days a year. Round interim calculations and final answers to one decimal Days' Sales in Inventory 20Y4 ____ days 20Y3 ____ days c. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 204 indicate a favorable or an unfavorable trend?
Inventory turnover and number of days’ sales in inventory Financial statement data for years ending December 31 for Tango Company follow: 20Y7 20Y6 Cost of goods sold $3,646,350 $3,853,305 Inventories: Beginning of year 773,800 737,300 End of year 846,800 773,800 Required a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Y7 20Y6 Inventory turnover fill in the blank 1 fill in the blank 2 b. Determine the number of days’ sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. 20Y7 20Y6 Number of days’ sales in inventory fill in the blank 3 days fill in the blank 4 days c. Are the changes in inventory turnover and the number of days’ sales in inventory from 20Y6 to 20Y7 favorable or unfavorable?
Inventory Turnover and Days’ Sales in Inventory Shown below are data from the Northern Company’s accounting records: Year 1 Year 2 Sales Revenue $8,000,000 $11,000,000 Cost of Goods Sold 4,000,000 4,800,000 Beginning Inventory 510,000 540,000 Ending Inventory 550,000 600,000 Calculate the company’s (a) inventory turnover and (b) days’ sales in inventory for both years.Round your answer to two decimal points. Year 1 Year 2 Inventory turnover Answer Answer Days' sales in inventory Answer Answer
Inventory turnover and number of days’ sales in inventory Financial statement data for years ending December 31 for Tango Company follow: Line Item Description 20Y7 20Y6 Cost of goods sold $3,784,320 $3,852,940 Inventories: Beginning of year 751,900 730,000 End of year 824,900 751,900 a. Determine the inventory turnover for 20Y7 and 20Y6. Round your answers to one decimal place. Line Item Description 20Y7 20Y6 Inventory turnover fill in the blank 1 of 2 fill in the blank 2 of 2 b. Determine the days’ sales in inventory for 20Y7 and 20Y6. Use 365 days a year. Round your answers to one decimal place. Line Item Description 20Y7 20Y6 Number of days’ sales in inventory fill in the blank 1 of 2 days fill in the blank 2 of 2 days

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