Inventory AnalysisThe following data were extracted from the income statement of Brecca Systems Inc.:Current YearPreceding YearSales$9,700,000$7,175,000Beginning inventories420,000400,000Cost of goods sold5,820,0004,305,000Ending inventories550,000420,000a. (1). Determine for each year the inventory turnover. Round answers to one decimal place.Current yearPreceding 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 yearPreceding yeardaysdaysb. What conclusions can be drawn from these data concerning the inventories?

The objective of the question is to calculate the inventory turnover and days' sales in inventory…

Answered: Inventory Analysis The following data…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question Content Area Based on the following data for the current year, what is the inventory turnover (rounded to one decimal place)? Sales on account during year $586,967 Cost of merchandise sold during year 176,594 Accounts receivable, beginning of year 46,824 Accounts receivable, end of year 52,382 Merchandise inventory, beginning of year 31,526 Merchandise inventory, end of year 40,442 a.21.2 b.4.9 c.16.3 d.3.9
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Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $788,400 $827,800 Beginning inventories 50,784 39,314 Cost of merchandise sold 394,200 459,900 Ending inventories 45,984 50,784 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 Prior 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 turnover has , while the number of days' sales in inventory has . The sales volume has faster than the inventory, resulting in a inventory position.
Inventory Analysis A company reports the following: Cost of goods sold $249,660 Average inventory 55,480 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 365 days a year. a. Inventory turnover b. Number of days' sales in inventory days
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Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Prior Year Sales Beginning inventories Cost of merchandise sold Ending inventories Current Year $919,800 $959,200 59,374 50,012 459,900 53,774 532,900 59,374 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 Prior Year 1. Inventory turnover 2. Number of days' sales in inventory 8.13 44.9 ✓ days 9.74 X 37.4 X days b. The inventory turnover has decreased ✔, while the number of days' sales in inventory has increased ✓. The sales volume has declined faster than the inventory, resulting in a deteriorating inventory position.
Suppose that the following information is available for Nike Inc. for the current year. Beginning inventory Ending inventory Cost of goods sold Net sales Inventory turnover Days in inventory $10,000 Calculate the inventory turnover, days in inventory, and gross profit rate for Nike Inc. for the current year. (Round gross profit rate to 2 decimal places, e.g. 12.51 and other answers to 1 decimal place, e.g. 15.2. Use 365 days for calculation.) Gross profit rate 12,500 80,100 140,000 times days % .
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