Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 How can the physical turnover of inventory (that is, true inventory turnover) best be approximated using all of the information available in a LIFO financial statement? Illustrate your approach by recomputing Sirotka's inventory turnover ratios for 20X2 and 20X3. (Round your answers to 3 decimal places.) Adjusted inventory turnover 20X2 20X3 Required 7 Required 8 Required 9 Required 10 Sirotka Retail Company began doing business in 20X1. The following information pertains to its first three years of operation: Use the following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) ● Operating Year Expenses 20x1 $60,000 20X2 20X3 Assume the following: ● 90,000 65,000 Purchases Sales Unit Units Cost 15,000 $20.00 Units 12,000 20,000 25.00 18,000 5,000 30.00 10,000 Unit Price $ 35 40 40 The income tax rate is 21%. Purchase and sale prices change only at the beginning of the year. Sirotka uses the LIFO cost flow assumption. Operating expenses are primarily selling and administrative expenses.
Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 How can the physical turnover of inventory (that is, true inventory turnover) best be approximated using all of the information available in a LIFO financial statement? Illustrate your approach by recomputing Sirotka's inventory turnover ratios for 20X2 and 20X3. (Round your answers to 3 decimal places.) Adjusted inventory turnover 20X2 20X3 Required 7 Required 8 Required 9 Required 10 Sirotka Retail Company began doing business in 20X1. The following information pertains to its first three years of operation: Use the following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided.) ● Operating Year Expenses 20x1 $60,000 20X2 20X3 Assume the following: ● 90,000 65,000 Purchases Sales Unit Units Cost 15,000 $20.00 Units 12,000 20,000 25.00 18,000 5,000 30.00 10,000 Unit Price $ 35 40 40 The income tax rate is 21%. Purchase and sale prices change only at the beginning of the year. Sirotka uses the LIFO cost flow assumption. Operating expenses are primarily selling and administrative expenses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Required 1 Required 2 Required 3 Required 4 Required 5 Required 6
How can the physical turnover of inventory (that is, true inventory turnover) best be approximated using all of the information
available in a LIFO financial statement? Illustrate your approach by recomputing Sirotka's inventory turnover ratios for 20X2
and 20X3. (Round your answers to 3 decimal places.)
Adjusted inventory turnover
20X2
20X3
Required 7 Required 8 Required 9 Required 10
Transcribed Image Text:Sirotka Retail Company began doing business in 20X1. The following information pertains to its first three years of operation: Use the
following links to the present value tables to calculate answers. (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from
the tables provided.)
●
Operating
Year Expenses
20x1 $60,000
20X2
20X3
Assume the following:
●
90,000
65,000
Purchases
Sales
Unit
Units Cost
15,000 $20.00
Units
12,000
20,000 25.00 18,000
5,000 30.00 10,000
Unit
Price
$ 35
40
40
The income tax rate is 21%.
Purchase and sale prices change only at the beginning of the year.
Sirotka uses the LIFO cost flow assumption.
Operating expenses are primarily selling and administrative expenses.
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