The following information pertains to two competitors, Sage Hill Inc. and Oriole Ltd.CompanySage Hill Inc.Oriole Ltd.(b)(a)Sage Hill Inc. reported sales revenue of $1,850,000, and Oriole Ltd. reported sales revenue of $4,820,000.BeginningInventory$148,000Cost ofEndingInventory Goods Sold$222,000$646,000 $414,400(c1)Your answer is correct.Calculate the inventory turnover and days to sell inventory ratios for Sage Hill and Oriole. (Round answers to 1 decimal place, e.g.10.5. Use 365 days for calculation.)Inventory turnover ratioGross marginDays to sell inventory ratio(f)Your answer is correct.Gross margin ratioeTextbook and Media$Your answer is correct.Sage Hill Inc. VeTextbook and Mediana$1,335,700OCapital that can be freed up$1,914,022AndiaSage Hill Inc.$heANTONASage Hill Inc.Calculate the gross margin and gross margin ratio for Sage Hill and Oriole. (Round gross margin ratio to 1 decimal place, e.g. 10.5%.)moves its inventory faster.514300B27.8EMeS7.22times50.6 days%On the basis of inventory turnover, which company is moving its inventory faster?$LAOriole Ltd.Oriole Ltd.2905978thousand60.33.61101.1times%daysEstimate the capital that Sage Hill could free up if it were to reduce its days to sell inventory ratio by 5 days. (Round days ininventory to 2 decimal places. Enter amount in thousands rounded to 0 decimal places, e.g. 125.)Attempts: 1 of 3 usedAttempts: 2 of 3 used

The inventory turnover ratio is an efficiency ratio. It indicates whether the management can move…

The following information pertains to two competitors, Sage Hill Inc. and Oriole Ltd. Company Sage Hill Inc. Oriole Ltd. Beginning Cost of Ending Inventory Goods Sold Inventory $148,000 $222,000 $646,000 $414,400 (a) Sage Hill Inc. reported sales revenue of $1,850,000, and Oriole Ltd. reported sales revenue of $4,820,000. Your answer is correct. $1,335,700 $1,914,022 Calculate the inventory turnover and days to sell inventory ratios for Sage Hill and Oriole. (Round answers to 1 decimal place, eg 10.5. Use 365 days for calculation.) Inventory turnover ratio Days to sell inventory ratio Sage Hill Inc. 7.22 50.6 times days Oriole Ltd. 3.61 101.1 times days

The following information pertains to two competitors, Sage Hill Inc. and Oriole Ltd. Company Sage Hill Inc. Oriole Ltd. Beginning Cost of Ending Inventory Goods Sold Inventory $148,000 $222,000 $646,000 $414,400 (a) Sage Hill Inc. reported sales revenue of $1,850,000, and Oriole Ltd. reported sales revenue of $4,820,000. Your answer is correct. $1,335,700 $1,914,022 Calculate the inventory turnover and days to sell inventory ratios for Sage Hill and Oriole. (Round answers to 1 decimal place, eg 10.5. Use 365 days for calculation.) Inventory turnover ratio Days to sell inventory ratio Sage Hill Inc. 7.22 50.6 times days Oriole Ltd. 3.61 101.1 times days

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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