The table below contains selected financial information from recent financial statements of KBI Toys and Little Tikes Adventure Toys, Inc., two toy manufacturing companies ($ in thousands): KBI Toys Little Tikes Net sales Cost of goods sold Year-end inventory 12/31/2021 12/31/2020 12/31/2021 12/31/2020 $৪e,৪22 63,500 7,500 $72,320 53,900 7,eee $63,680 42,000 5,900 $69,100 46,425 6,400 Required: Calculate the 2021 gross profit ratio, inventory turnover ratio, and the average days in inventory for the two companies. (Do not round intermediate values. Round your gross profit ratio and average days in inventory to the nearest whole number. Round "Inventory turnover" answer to two decimal places.) KBI TOYS LITTLE TIKES Gross profit ratio % Inventory turnover Average days in inventory days days

The table below contains selected financial information from recent financial statements of KBI Toys and Little Tikes Adventure Toys, Inc., two toy manufacturing companies ($ in thousands): KBI Toys Little Tikes Net sales Cost of goods sold Year-end inventory 12/31/2021 12/31/2020 12/31/2021 12/31/2020 $৪e,৪22 63,500 7,500 $72,320 53,900 7,eee $63,680 42,000 5,900 $69,100 46,425 6,400 Required: Calculate the 2021 gross profit ratio, inventory turnover ratio, and the average days in inventory for the two companies. (Do not round intermediate values. Round your gross profit ratio and average days in inventory to the nearest whole number. Round "Inventory turnover" answer to two decimal places.) KBI TOYS LITTLE TIKES Gross profit ratio % Inventory turnover Average days in inventory days days

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Description: The table below contains selected financial information from recent financial statements of KBI Toys and Little Tikes AdventureToys, Inc., two toy manufacturing companies ($ in thousands):KBI Toys12/31/2021 12/31/2020$৪e,822Little Tikes12/31/2021 12

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

The table below contains selected financial information from recent financial statements of KBI Toys and Little Tikes Adventure
Toys, Inc., two toy manufacturing companies ($ in thousands):
KBI Toys
12/31/2021 12/31/2020
$৪e,822
Little Tikes
12/31/2021 12/31/2020
Net sales
Cost of goods sold
Year-end inventory
63,500
7,500
$72,320
53,900
7,e00
$63,680
42,e00
5,900
$69,100
46,425
6,400
Required:
Calculate the 2021 gross profit ratio, inventory turnover ratio, and the average days in inventory for the two companies. (Do not
round intermediate values. Round your gross profit ratio and average days in inventory to the nearest whole number. Round
"Inventory turnover" answer to two decimal places.)
ΚΒΙ ΤΟΥS
LITTLE TIKES
%
Gross profit ratio
Inventory turnover
Average days in inventory
days
days
ctions: On
* AssessibilityG Inyestigate

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