Skynet Unlimited is an innovator in the new industry of neural-networked computer manufacturing. Theyemploy about 50 employees in their automated factories. The following table shows a summary of dataextracted from their financial accounts at the end of accounting year 2021.Summary of Financial Account data 2021 (in thousands dollars)Sales RevenueProfit before taxCost of goods sold30078165Capital employedStarting inventory1,06229Ending inventory34In 2020, the company's inventory turnover ratio was 7.64. What is their Inventory Turnover ratio for theyear 2021?note: write the number with at most 2 decimal places (eg. 95.17)

Inventory is the stock which the company has for the purpose to sell and the business has been…

Answered: In 2020, the company's inventory…

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In 2020, the company's inventory turnover ratio was 7.64. What is their Inventory Turnover ratio for the year 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Skynet Unlimited is an innovator in the new industry of neural-networked computer manufacturing. They
employ about 50 employees in their automated factories. The following table shows a summary of data
extracted from their financial accounts at the end of accounting year 2021.
Summary of Financial Account data 2021 (in thousands dollars)
Sales Revenue
Profit before tax
Cost of goods sold
300
78
165
Capital employed
Starting inventory
1,062
29
Ending inventory
34
In 2020, the company's inventory turnover ratio was 7.64. What is their Inventory Turnover ratio for the
year 2021?
note: write the number with at most 2 decimal places (eg. 95.17)

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