The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from thefinal report:Net revenueCost of goods soldValue of production materials on hand iValue of work-in-process inventoryValue of finished goods on handInventory turnover ratio$365,000316,00042,500a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.)Weeks of supply41,00014,50011.2 per yearb. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)

Inventory turnover ratio (ITR):= (Cost of goods sold / Total inventory)=Cost of goods sold /…

The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue Cost of goods sold Value of production materials on hand i Value of work-in-process inventory Value of finished goods on hand $365,000 316,000 42,500 41,000 14,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) Inventory turnover ratio 11.2 per year b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)

The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue Cost of goods sold Value of production materials on hand i Value of work-in-process inventory Value of finished goods on hand $365,000 316,000 42,500 41,000 14,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) Inventory turnover ratio 11.2 per year b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Consider the following information about March raw material inventory: Inventory turnover = 5.0,…

A: Purchases= Cost of goods sold + Ending inventory - Beginning inventory Cost of goods sold =…

Q: Capital Technologies Inc. began 2020 with inventory of $20,000. During the year, Capital purchased…

A: Inventory Beg bal $ 20,000 JE 3 $20,000 JE4 $ 30,000 End bal $ 30,000…

Q: Apply mathematical skills around cost structures and appropriate equations to answer the following,…

A: The question has asked to compute the cost of purchase during the year. We can compute the cost of…

Q: To measure inventory management performance, a company monitors its inventory turnover ratio. Listed…

A: The Inventory Turnover Ratio is a financial metric that measures how many times a company's…

Q: The cost of goods sold for the year is: Multiple Choice O $176.100. O $115.300. O $63.300. O…

A: The direct expenses of manufacturing the products that a business sells are referred to as its cost…

Q: A company began January with 9,000 units of its principal product. The cost of each unit is $5.…

A: The total cost of goods purchased or produced during a given time period is then divided by the…

Q: Calculate it

A: To calculate the cost of goods manufactured, you can use the following formula: Cost of Goods…

Q: The balances in the perpetual inventory accounts of Anditon Manufacturing Corporation at the…

A: Under perpetual inventory system of recording inventory, whenever a purchase or sale of inventory is…

Q: Zoola, Inc. provided the following information regarding its inventory for the current year, its…

A: Solution- Income statement of zoola inc under…

Q: The cost of goods sold for Frye Manufacturing in the year was $373,000. The January 1 Finished Goods…

A: Step 1: The cost of goods manufactured can be calculated using the formula for the price of goods…

Q: Chili Manufacturing Company Income Statement Month Ended June 30, 2018 Net Sales Revenue Cost of…

A: The following computations are done for Chili Manufacturing Company.

Q: A company reports the following: Cost of goods sold $585,825 Average inventory 78,110…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: The financial analysis of a manufacturing company for the previous year yielded the following…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Please need help with this question

A: Step 01: Calculating the Cost of Goods Sold (COGS): Gross Profit = Sales - Cost of Goods Sold Sales…

Q: Please give me answer

A: Step 1: Introduction to the Ending Finished GoodsGoods can be defined as the finished products…

Q: The following are data regarding Sunny Company in 2021 - Finished Goods Inventory December 31…

A: “Since you have posted a many questions, we will solve first question for you. To get the remaining…

Q: Sweet Cheezus reported the following year-end information: Beginning Work in Process Inventory Cost…

A: Answer Cost of goods available for sale = Cost of goods Manufactured + Beginning…

Q: Following is the information of Radhe company. Calculate the cost of closing inventory Weighted…

A: The gross profit is calculated as the difference between the sales and cost of goods sold. The…

Q: The owner of a large machine shop has just finished its financial analysis from the prior fiscal…

A: Interpretation:The machine shop has an inventory turnover ratio of 2.8. This means they sell and…

Q: 19. Using the information below, calculate gross profit for the period: Sales revenues for the…

A: The gross profit is computed by deducting the cost of goods sold from the sales revenue. The cost of…

Q: accou method at the end of each period, as if it uses a periodic inventory system. Assume its…

A: Given : Transactions Units Unit Cost Beginning inventory, January 1 200 $ 30 Transactions…

Q: DeForest Company had the following transactions for the month. Sales for the month are $85 per unit.…

A: The inventory valuation method is used to evaluate the closing inventory and cost of goods sold…

Q: Consider the following transactions for DeTrees Company for the month shown in chronological order:…

A: The weighted average cost per unit is calculated as total cost divided by no. Of units.

Q: I want the Answer

A: Step 1: In order to calculate the cost of the goods manufactured (COGM) during the year, we have to…

Q: Give me correct answer for this question

A: If you have any questions let me know in comment box thankyou for your question.

Q: Want the Correct answer

A: Step 1:Step 2: Step 3: Step 4:

Concept explainers

Operating Cash Flows

A cash flow statement (CFS) helps the company to know the amount of cash at its disposal, the activities that lead to earning cash, and the activities which require cash expenditure for a particular period. The statement represents the liquidity of the company.

Question

The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the
final report:
Net revenue
Cost of goods sold
Value of production materials on hand i
Value of work-in-process inventory
Value of finished goods on hand
Inventory turnover ratio
$365,000
316,000
42,500
a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.)
Weeks of supply
41,000
14,500
11.2 per year
b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Formula

VIEW

Step 2: Calculations

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Solve for the missing information designated by "?" in the following table. (Use 365 days in a year. Round the inventory turnover ratio to one decimal place before computing days to sell. Round days to sell to one decimal place.) Case a. b. C. $ $ Beginning Inventory Purchases 112 $ 224 SA Cost of Goods Sold 1,120 $ $ $ 8.0 Days to Sell 36.5
Accounts Debit Credit Cash $24,300 Accounts Receivable 42,500 Allowance for Uncollectible Accounts $2,700 Inventory 42,000 Land 79,600 Accounts Payable 29,200 Notes Payable (8%, due in 3 years) 42,000 Common Stock 68,000 Retained Earnings 46,500 Totals $188,400 $188,400 The $42,000 beginning balance of inventory consists of 420 units, each costing $100. During January 2024, Big Blast Fireworks had the following inventory transactions: January 3 Purchase 1,050 units for $115,500 on account ($110 each). January 8 Purchase 1,150 units for $132,250 on account ($115 each). January 12 Purchase 1,250 units for $150,000 on account ($120 each). January 15 Return 160 of the units purchased on January 12 because of defects. January 19 Sell 3,600 units on account for $576,000. The cost of the units sold is determined using a FIFO perpetual inventory system. January 22 Receive $529,000 from customers on accounts receivable. January 24 Pay $359,000 to inventory suppliers on accounts payable. January…
Apply mathematical skills around cost structures and appropriate equations to answer the following, inclusive of all associated workings to maximise marks: The inventory value for the financial statements of Zyon for the year ended 31st Oct 2022 was based on an inventory count on 3rd Nov 2022, which gave a total inventory value of $836,200.Between 31st Oct and 3rd Nov, the following transactions took place:Purchases of goods $8,600. Sales of goods (profit margin 35% on sales $14,000). Goods returned by Zyon to supplier $878. What adjusted figure should be included in the financial statements for inventories at 31st Oct 2022 to nearest hundred?
Consider the following information: Units Cost per unit Total costs Goods in inventory at start of year 1,600 $1.92 $3,072 Purchases, quarter 1 800 $1.40 $1,120 Purchases, quarter 2 1,000 $1.60 $1,600 Purchases, quarter 3 1,200 $1.80 $2,160 Purchases, quarter 4 800 $2.00 $1,600 5,400 $9,552 Goods sold during the year: 3000 units Using the weighted-average-cost method, the value of ending inventory is:
Balamb Corporation had the following transactions for the month: Calculate the ending inventory dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. first-in, first-out (FIFO) last-in, first-out (LIFO) weighted average
A company reports the following: Cost of goods sold $2,263,000 Average inventory 182,500 Determine the (a) inventory turnover, and (b) number of days' sales in inventory. Round your answers to one decimal place. Assume a 365-day year. a. Inventory turnover fill in the blank 1 b. Number of days' sales in inventory fill in the blank 2 days
Garrison Company uses the retail method of inventory costing. It started the year with an inventory that had a retail sales value of $36,200.During the year, Garrison purchased inventory with a retail sales value of $771,100. After performing a physical inventory, Garrison computed the inventory at retail to be $54,700. The markup is 100% of cost.What is the ending inventory at its estimated cost? A. $27,350 B. $136,750 C.$82,050
The following is the year ended data for Tiger Company: Sales Revenue $58,000 Cost of Goods Manufactured 21,000 Beginning Finished Goods Inventory 1,100 Ending Finished Goods Inventory 2,200 Selling Expenses 15,000 Administrative Expenses 3,900 What is the gross profit? A. $22,100 B. $38,100 C. $19,200 D.
The following is the year ended data for Tiger Company: Sales Revenue Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Finished Goods Inventory Selling Expenses Administrative Expenses What is the cost of goods available for sale? O A. $5,700 OB. $29,300 OC. $26,700 O D. $24,300 $51,000 28,000 1,300 2,600 15,100 3,500

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS