**Inventory Turnover**The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products:| | Tomato | Happy Times ||--------------------|-----------------|--------------|| Cost of merchandise sold | $4,815,250 | $3,080,000 || Inventory, end of year | 116,000 | 158,000 || Inventory, beginning of the year | 71,000 | 194,000 |**Tasks:**A. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place.B. Would you expect Happy Times inventory turnover to be higher or lower than Tomato’s?The inventory turnover ratio is an important measure of how effectively a company manages its stock of goods. This calculation helps in evaluating the performance of the inventory management.

Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products: Tomato Happy Times Cost of merchandise sold $4,815,250 $3,080,000 Inventory, end of year 158,000 000'9 000' a. Determine the inventory turnover for Tomato and Happy Times. Round to one Inventory, beginning of the year 000' decimal place. Tomato Happy Times b. Would you expect Happy Times inventory turnover to be higher or lower than Tomato's?

Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products: Tomato Happy Times Cost of merchandise sold $4,815,250 $3,080,000 Inventory, end of year 158,000 000'9 000' a. Determine the inventory turnover for Tomato and Happy Times. Round to one Inventory, beginning of the year 000' decimal place. Tomato Happy Times b. Would you expect Happy Times inventory turnover to be higher or lower than Tomato's?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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?
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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?
Ending Inventory?
Epsilon Corp. reported the following information for the current year: Beginning inventory. Purchases. .P 5,000,000 26,000,000 2,000,000 3,500,000 1,500,000 40,000,000 3,000,000 500,000 1,000,000 Freight In. Purchase returns and allowances. Purchase discounts.. Sales.... Sales returns. Sales allowances. Sales discounts. The physical count taken at year-end resulted in an ending inventory of P 4,000,000. At year- end, unsold merchandise out on consignment with selling price of P 1,000,000 are in the hands of a consignee. The gross profit was 40% on sales. 5. What is the cost of goods available for sale? A. P 28,000,000 6. What is the cost of sales? A. P21,900,000 7. What is the estimated cost of inventory shortage? A. P1,800,000 В. Р31,000,000 С. Р 3,000,000 D. P 29,500,000 В. Р 22,200,000 C. P21,300,000 D. P 24,000,000 В. Р 2,700,000 С.Р 1,200,000 D. P2,100,000
Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products: Tomato Happy Times Cost of merchandise sold $3,670,800 $2,159,400 Inventory, end of year 86,000 106,000 Inventory, beginning of the year 52,000 130,000 a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place. Tomato Нарру Times b. Would you expect Happy Times inventory turnover to be higher or lower than Tomato's? Lower v Feedback V Check My Work a. Divide the cost of goods sold by the average inventory. The average inventory is the total of the beginning and ending inventories divided by two. b. Consider the components involved in this ratio. Generally, the larger the inventory turnover the more efficiently and effectively the company is managing inventory.
Dakota Company had net sales (at retail) of $260,000. The following additional information is available from its records. Use the retail inventory method to estimate Dakota’s year-end inventory at cost.