Refer to the following selected financial information from Phantom Corp. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) Year 2 Year 1 Merchandise inventory 280,000 262,500 Cost of goods sold 477,400 424,100

Q: Metlock Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: 1.Cost of goods sold can be calculated as follows;Cost of goods sold =Beginning inventory +Net…

Q: The cost of goods sold was computed at P12.250. Total sales for the year were P42,950. of which…

A: The Inventory turnover ratio is the measure of how often the inventory goes out or sold. Greater the…

Q: 1. TAPULAN KO Company provided the following data for the current year: Inventory, January 1…

A: Cost of goods sold = Inventory, January 1 + Purchases - Purchase Returns and Allowances - Inventory,…

Q: The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year…

A: DIO( Days Inventory Outstanding)=(Avg Inventory/COGS)*No of days

Q: Consider the following financial statement information for the Bulldog Icers Corporation: Ending…

A: The operating cycle refers to the time taken by a company to turn its inventory into cash. The…

Q: below is information for the month of May Inventory, May 1 Purchases (gross) Freight-in Sales…

A: The cost of goods sold is calculated as difference between sales and gross profit. The net income is…

Q: 18. $ Net Sales 19. $ Calculate cost of goods sold 20. $ Gross profit 21. % Gross profit ratio…

A: Calculation of net sales, cost of goods sold, gross profit, and gross profit ratio are as follows

Q: The cost of goods sold was computed at P12.250. Total sales for the year were P42.950, of which…

A: Introduction: Inventory turnover ratio: Division of Average inventory with cost of goods sold…

Q: Applying the Cost of Goods Sold Model Milton Company reported beginning inventory of $74,000 on…

A: The cost of goods sold (COGS) represents the direct expenses incurred by a company to produce goods…

Q: Anthony Corporation reported the following amounts for the year: Net sales Cost of goods sold…

A: DAYS SALES IN INVENTORY Days Sales in Inventory is the ratio between 365 Days & Inventory…

Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory…

A: 1:  Lewis:Cost of goods sold: $266,200 Clark:Cost of goods sold: $173,600  2: Lewis: Inventory…

Q: Based on the following data for the current year, what is the number of days' sales in inventory?…

A: Days sales inventory It is  an estimation of the typical number of days or time expected for a…

Q: 1.  Determine the estimated cost of the merchandise inventory of Celebrity Tan on August 28 by the…

A: 1.   Calculating cost to retail ratio   Cost Retail Cost to retail ratio Merchandise…

Q: Selected financial information for Zachary Company for Year 4 follows: Sales Cost of goods sold…

A: The financial ratios helps to analyse the financial statements of the business on the basis of…

Q: Bridgeport Company uses the gross profit method to estimate inventory for monthly reporting…

A: Calculating of inventory as a balancing figures in case of gross profit method , we need to prepare…

Q: The following data were taken from a company’s latest financial statements: Annual sales $2,433,332…

A: Cost of goods sold = $2,027,778 Inventories = $500,000

Q: The following data are taken from the financial statements:   Current Year Preceding Year Sales…

A: Inventory Turnover :— It is calculated by dividing cost of goods sold by average inventory.…

Q: Selected financial information for Zachary Company for Year 4 follows: Sales Cost of goods sold…

A: Average Merchandise inventory= (Beginning merchandise inventory + Ending merchandise…

Q: The following data were extracted from the income statement of Brecca Systems Inc.: Current Year…

A: Given:

Q: A company reports the following: Line Item Description Amount Cost of goods sold $2,007,500 Average…

A: Solution:a.   Inventory turnover = Cost of good sold / Average inventory…

Q: PAKIALAMERA KO Company provided the following data for the current year: Inventory, January 1…

A: The cost of goods sold can be calculated by adding up net purchases and deducting ending inventory…

Q: Selected financial information for Rooney Company for Year 4 follows: $ 1,800,000 1,260,000 Sales…

A: Inventory turnover ratio is the measure that helps in determining the efficiency of the entity in…

Q: Refer to the following selected financial information from Helpful Hardware. Compute the company's…

A: Days sales in inventory is the measure of number of days it take the company to sell its inventory.…

Q: SCC Company reported the following for the current year:   Net sales $ 48,000 Cost of goods sold…

A: Inventory turnover ratio :Inventory turnover ratio indicates the demand for the product &…

Q: Sandhill Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: The cost of goods manufactured includes all the manufacturing costs while the cost of goods sold…

Q: SCC Company reported the following for the current year. Net sales $ 52,000 Cost of goods sold…

A: The ratio is the technique used by the prospective investor or an individual or strategist to read…

Q: The following is selected information from Mars Corp. Compute net purchases, and cost of goods sold…

A: Net Purchase :— It is gross purchases less purchase discount less purchase return and allowance.…

Q: a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in…

A: Inventory turnover:   Inventory turnover ratio is a measure of liquidity, which evaluate how…

Q: Use the following information to complete the calculations below. Cost of goods sold $195,640…

A: Inventory is one of the essential parts of an organisation. In the balance sheet, it is classified…

Q: A company reports the following: Cost of merchandise sold $1,861,500 Average merchandise inventory…

A: analysing of the ratio is considered to be very important part both in finance and an accounts…

Q: Ronda Company provided the following data for the current year: Inventory, January 1 - P2,000,000…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: Refer to the following selected financial information from Phantom Corp. Compute the company's days'…

A: GIVEN   Merchandise inventory  Year 2 = 287000 Year 1 =269500 Cost of goods sold Year 2 = 470400…

Q: Based on the following data for the current year, what is the number of days' sales in inventory…

A: Answer) Calculation of Days’ Sales in Inventory Days’ Sales in Inventory = (Average Inventory/ Cost…

Q: Refer to the following selected financial information from Phantom Corp. Compute the company's days'…

A: Introduction:- First we need to calculate inventory turnover ratio Inventory turnover ratio =Cost of…

Q: Pearl Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: Cost of goods sold = Inventory may 1 + Net purchase + Freight in - Inventory at May 31 So, Ending…

Q: Stellar Company uses the gross profit method to estimate inventory for monthly reporting purposes.…

A: The "freight in" means the transportation expenses a company pays when buying supplies or materials…

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.