Summit Outdoor Gear had inventory of $15,000 on Jan 1, 20X5, and $19,000 on Dec 31, 20X5. Sales for 20X5 were $320,000, and the company's gross profit percentage was 40%- What was the inventory turnover ratio for Summit Outdoor Gear in 20X5?

Summit Outdoor Gear had inventory of $15,000 on Jan 1, 20X5, and $19,000 on Dec 31, 20X5. Sales for 20X5 were $320,000, and the company's gross profit percentage was 40%- What was the inventory turnover ratio for Summit Outdoor Gear in 20X5?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 15BEA: Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000....

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Question

What was the inventory turnover ratio for this financial accounting question?

Summit Outdoor Gear had inventory of $15,000 on Jan 1, 20X5, and
$19,000 on Dec 31, 20X5. Sales for 20X5 were $320,000, and the
company's gross profit percentage was 40%-
What was the inventory turnover ratio for Summit Outdoor Gear in
20X5?

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Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
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