Inventory Turnover and Days Sales in Inventory The Eastern Corporation installed a new inventory management system at the beginning of 2012. Shown below are data from the companys accounting records as reported by the new system: 2012 /2013 Sales Revenue $21,000,000, $23,000,000 Cost of goods sold 11,000,000, 11,900,000 Beginning inventory 5,500,000,  5,530,000 Ending inventory 5,530,000 5,600,000 Calculate the companys (a) inventory turnover and (b) days sales in inventory for 2012 and 2013. Round your answers to two decimal points. HINT: Use your rounded answers for inventory turnover to calculate days' sales in inventory.

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A: Answer:- Inventory refers to the stock that is held by the company for resale purposes or the goods…

Q: Compute the Days-in-Inventory for the Year End Dec-31-2016, given the Following; Cost of Goods Sold…

A: Days in Inventory is a financial ratio that measures the average number of days it takes for a…

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A: Under specific identification method, inventories that are specifically identified will be sold out…

Q: Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato…

A:

Q: The management of Swifty Inc. is reevaluating the appropriateness of using its present inventory…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: Cansela Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: LIFO means Last In First Out, which means that the inventory that has been brought into business at…

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A: Lets understand the basics.Inventory turnover ratio shows how many times company can turned over its…

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A: The inventory turnover ratio is used to figure out, how efficiently the inventory is managed.

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A: LIFO system based on the idea that most recent product in your inventory will be use first.Cost of…

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A: Ratio analysis is a technique used in financial analysis to assess the health and performance of a…

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A: Under FIFO method the oldest products in inventory have been sold first.

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A: Lets undersand the basics. Inventory turnover ratio shows how many times a year, entity is…

Q: Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory…

A: Inventory turnover ratio: It tells about the number of times inventory sold in an accounting period.…

Q: Inventory Turnover and Days’ Sales in Inventory W. Glass & Company reported the following…

A: Days sales in inventory is calculated by dividing number of days in a year by inventory turnover…

Q: Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory…

A: Inventory turnover ratio of the company measures how many times inventory sold in a particular year.…

Q: Using the information​ provided, what is the inventory turnover for the​ firm?   Allied​ Industries,…

A: To calculate the inventory turnover for the firm, you need to divide the cost of goods sold (COGS)…

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A: Inventory turnover ratio is used to calculate the number of time inventory has been replaced by the…

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A: Inventory turnover ratio measures the number of times a company has sold its inventory. The ratio…

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A: As per the FIFO (First in first out) method the inventory which comes first will out first, hence in…

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A: Inventory turnover is the measure that helps the entity in determining the time taken by the entity…

Q: A company reports inventory and cost of goods sold based on calculations from a LIFO periodic…

A: The objective of the question is to calculate the cost of goods sold (COGS), the LIFO liquidation…

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A: The inventory turnover ratio indicates the efficiency of the management to sell out its inventory…

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A: Inventory Turnover Ratio = Cost of goods sold/ Average Inventory

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A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: Based on our understanding of inventory cost flows, and given the information listed below for the…

A: The correct answer is option (e).

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Q: W. Glass & Company reported the following information in its recent annual report: Year 1 Year 2…

A: Average Inventory = Beginning inventory + Ending inventory2                       For Year 1 =…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.