[The following information applies to the questions displayed below.] Wawa Food Markets is a convenience store chain located primarily in the Northeast. The company sells gas, candy bars, drinks, and other grocery- related items. St. Jude Medical Incorporated sells medical devices related to cardiovascular needs. Suppose a local Wawa Food Market and St. Jude sales office report the following amounts in the same year (company names are disguised): Company 1 $400,000 Company 2 $400,000 Net sales Cost of goods sold 180,000 330,000 Gross profit $220,000 $ 70,000 Average inventory $ 40,000 $ 30.000 Required: 1. For Company 1 and Company 2, calculate the inventory turnover ratio.

[The following information applies to the questions displayed below.] Wawa Food Markets is a convenience store chain located primarily in the Northeast. The company sells gas, candy bars, drinks, and other grocery- related items. St. Jude Medical Incorporated sells medical devices related to cardiovascular needs. Suppose a local Wawa Food Market and St. Jude sales office report the following amounts in the same year (company names are disguised): Company 1 $400,000 Company 2 $400,000 Net sales Cost of goods sold 180,000 330,000 Gross profit $220,000 $ 70,000 Average inventory $ 40,000 $ 30.000 Required: 1. For Company 1 and Company 2, calculate the inventory turnover ratio.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

33. subject:- Accounting
I NEED HELP WITH T-TABLE Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2020, the company’s Cash account per its general ledger showed a balance of $7,402.00.The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 8,403.20 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $30 for the printing of additional company checks. 2. Cash sales of $993.48 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $1,043.48. The bank credited Timmins Company for the correct amount. 3. Outstanding checks at May 31 totaled $941.35, and deposits in transit were $2,013.15. 4. On May 18, the company issued…
ograms Plus is a retail firm that sells computer programs for home and business use. Programs Plus operates in a state with no sales tax. On December 31, 20X1, its general ledger contained the accounts and balances shown below: ACCOUNTS BALANCES Cash $ 18,280 Dr. Accounts Receivable 29,600 Dr. Allowance for Doubtful Accounts 110 Cr. Merchandise Inventory 65,375 Dr. Supplies 7,040 Dr. Prepaid Insurance 2,980 Dr. Equipment 37,000 Dr. Accumulated Depreciation—Equipment 11,600 Cr. Notes Payable 7,564 Cr. Accounts Payable 7,100 Cr. Social Security Tax Payable 710 Cr. Medicare Tax Payable 160 Cr. Yasser Tousson, Capital 96,620 Cr. Yasser Tousson, Drawing 50,000 Dr. Sales 520,980 Cr. Sales Returns and Allowances 10,800 Dr. Purchases 320,330 Dr. Freight In 3,900 Dr. Purchases Returns and Allowances 7,745 Cr. Purchases Discounts 15,330 Cr. Rent Expense 17,500 Dr. Telephone Expense 2,314 Dr. Salaries…
MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $415,654,000 and allowance for doubtful accounts of $93,760,000. Johnson & Johnson manufactures and sells a wide range of healthcare products including Band-Aids and Tylenol. As of a recent year, Johnson & Johnson reported accounts receivable of $10,114,000,000 and allowance for doubtful accounts of $340,000,000. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for MGM Resorts International. Round to one decimal place.b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable, for Johnson & Johnson. Round to one decimal place.c. Discuss possible reasons for the difference in the two ratios computed in (a) and (b).
The following are three independent situations. 1. Sandhill Rewards Inc. provides rewards services to licensees. Sandhill records service revenue related to rewards (granted as reward vouchers, which can be redeemed at a variety of retailers) and recognizes the cost of redemptions in the year vouchers are sold to licensees. Sandhill's past experience indicates that only 80% of the vouchers sold to licensees will be redeemed. Sandhill's liability for stamp redemptions was $12,693,900 at December 31, 2024. Additional information for 2025 is as follows. Service revenue from vouchers sold to licensees Cost of redemptions (vouchers sold prior to 1/1/25) $8,614,200 If all the vouchers sold in 2025 were presented for redemption in 2026, the redemption cost would be $5,173,300. What amount should Sandhill report as a liability for voucher redemptions at December 31, 2025? Liability for stamp redemptions at December 31, 2025 $ Consumer expiration date Total face amount of coupons issued Total…
Restaurant A serves lunch and dinner. It is open 5 days a week all year long. The total revenue for the past year was $1,000,000. The manager of Matt's Deli estimates that 52% of its revenue is provided by lunch service and the remainder by dinner service. Matt's has 50 seats, with a seat turnover rate of 7.3 for lunch and 4.8 for dinner. Determine the average check per meal for lunch. Select one: a. $237 b. $653 c. None of the available choices d. $333
Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year on December 31, 2021, the company reports the following amounts:Cash $ 1,200 Service revenue $67,700Equipment 29,000 Cost of goods sold 53,400Accounts payable 4,400 (food expense)Delivery expense 2,600 Buildings 40,000Salaries expense 5,500 Supplies 3,400 Salaries payable 800In addition, the company had common stock of $40,000 at the beginning of the year and issued an additional $4,000 during the year. The company also had retained earnings of $18,200 at the beginning of the year.Required: Prepare the income statement, statement of stockholders’ equity, and balance sheet for…
The XYZ Corporation owns and operates hotels and casinos including the XYZ Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, XYZ reported account receivable of $676,000 and allowance for doubtful accounts of $132,496. Patient Care manufactures and sells a wide range of healthcare products including Band-Ald bandages and Tylenol. As of a recent year, Patient Care reported accounts receivable of $891,000 and allowance for doubtrul accounts of $30,294. Round all amounts to one decimal place. a. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for the XYZ Corporation. 16.6 X % b. Compute the percentage of the allowance for doubtful accounts to the accounts receivable for Patient Care. 3.3 x % c. Possible reasons for the difference in the two ratios computed in (a) and (b) indude: a. Casino operators historically lose money on operations. b. Casino operators have larger accounts receivable. c. Individuals who may have adequate…