Seacrest Corporation sells sailboats and has an inventory turnover ratio of 4.91 times per year based on its most recent audited annual financial statements. Assume a 365 day year. During the year Seacrest sold 3 boats at an average selling price of $89850. Seacrest applies a 20% mark up on cost and is enough to pay its annual operating expenses of $44,000. Required 1: How much is the Average Inventory for the year? $ Required 2: On average how many days does it take Seacrest to completely sell its inventory of boats? Determine the average days of outstanding inventory. Required 3: Seacrest's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):

Seacrest Corporation sells sailboats and has an inventory turnover ratio of 4.91 times per year based on its most recent audited annual financial statements. Assume a 365 day year. During the year Seacrest sold 3 boats at an average selling price of $89850. Seacrest applies a 20% mark up on cost and is enough to pay its annual operating expenses of $44,000. Required 1: How much is the Average Inventory for the year? $ Required 2: On average how many days does it take Seacrest to completely sell its inventory of boats? Determine the average days of outstanding inventory. Required 3: Seacrest's Gross profit percentage is (report it as multiplied by 100 to represent it as a percentage):

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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