This year, ABC expects sales of $137,328,000 and a gross profit margin of 16 percent this year, along with an Inventory Turnover Ratio (COGS Basis) of 6.10. What is ABC's projected level of inventory, given these numbers?

Q: A firm with annual sales of $7,600,000 increases its inventory turnover from 4.0 to 4.5. How much…

A: Inventory turnover is one of the efficiency ratio being used in business. This shows how many times…

Q: A firm with sales of $500,000 has average inventory of $200,000. the industry average for inventory…

A: Inventory turnover measures how many times, on average company sells its entire inventory during the…

Q: Suppose that Al Ma'arif Group is engaged in manufacturing and sales of a seasonal product. Based on…

A: Level production plan is used where the demand for the product is seasonal. Under this plan units…

Q: The current stock price of Bay James Tourism Company is $25. Current earnings per share are $15 and…

A: Given information Current stock price = $25 Current earnings price per share = $15 Growth = 20%…

Q: Pacific Storage expects to have earnings per share of $5.25 in 2005, and $5.65 in 2006. The average…

A: The objective of the question is to calculate the expected price of Pacific's stock in 2005 and 2006…

Q: The Diamond Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; Profit Margin = 0.10;…

A: AFN or Additional funds needed means the additional amount of money a company needs, to finance the…

Q: Assume sales volume for the company is expected to shrink 7.65% while their average price per unit…

A: The problem is asking us to calculate the new percentage of sales that the cost of goods sold (COGS)…

Q: Valley Markets has an inventory turnover of 3.2 and a capital intensity ratio of 1.9. What are the…

A: Lets understand the basics. Days in inventory ratio shows how many days it takes to convert raw…

Q: Sales last year during June were $20,000. Sales this June were $21,500. What percentage increase or…

A: Sales refer to a company’s top line. Sales figure are not constant each year but changes with change…

Q: 15. Charlie's Cycles Inc. has $110 million in sales. The company expects that its sales will…

A: Inventory turnover ratio is ratio of sales to inventory. Forecasted sales = Sales*(1+increment%)…

Q: Suppose a firm has had the following historic sales figures. Year: 2016 2017 2018 2019 2020…

A: The objective of the question is to forecast the next year's sales using the naïve approach. The…

Q: Hammond Supplies expects sales of 207,640 units per year with carrying costs of $4.23 per unit and…

A: Demand = 235,880Carrying cost = 2.18Ordering cost = 3.1First, find the Economic Order Quantity…

Q: A firm has annual sales of $100 million, $20 million of inventory, and $30 million of accounts…

A: The inventory turnover ratio is the number of times a company has sold and replenished its inventory…

Q: The company had the following inventory at end-of-year prices: $1,230,000 in 2016 (base year),…

A: Last in, first out (LIFO) is a method used to account for inventory. Under LIFO, the costs of the…

Q: Flingen Inc. reveals the following information in its annual report for FY 2021 Income Statement…

A: Reduction in Cost of goods sold= COGS * 6%= 5700000*.06= 342000

Q: Riley Co. has a DOL of 140% and a DFL of 113%. If sales decrease by 12%, what is the expected…

A: DOL measures the percentage change in operating income(EBIT) for a percentage change in sales. A…

Q: a. EFG reports annual sales of $ 30 million. Annual costs of goods sold is $ 15 million. Inventory…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Jasper Jewelry has $150 million in sales. The company expects that its sales will increase 5% this…

A: Sales =$150 Million Sale increase percentage =5% Inventories = $11 + 0.07(Sales)

Q: A company has current liabilities of $500 Million, and its current ratio is 2.0. If the firm’s quick…

A: Current assets is shown the assets of the company. It includes the Cash, Cash Equivalent, bills…

Q: old 1128 units of Deft in the current year. Assu

A: To calculate the number of years it will take before Deft cannot meet future demand unless…

Q: Inventory turnover at GTM Inc.:The average inventory levels at GTM are $1,200,000 and $2,500,000,…

A: Total Average Inventory = Average Raw Materials Inventory + Average WIP Inventory + Average Finished…

Q: In 2020 Coca Cola reported net operating revenues of P18.2 billion and cost of goods sold for P0.8…

A: Formula: Gross profit = Net operating revenue - Cost of goods sold

Q: Based on the following data below: In 2019: Total Sales= 1.5 billion with the Motor Category…

A: Sales revenue is total income earned by an organization by selling all its units. It is computed by…

Q: Jace Furnishings has $325 million in sales. The company expects that its sales will increase 8% this…

A: Current sale =$325 Million Growth rate =8% Expected Sale = Sale *(1+growth rate) = 325*(1+0.08)…

Q: Flingen Inc. reveals the following information in their annual report for FY 2021 Selected Income…

A: Return on assets (ROA) is a financial metric that measures a company's profitability relative to its…

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.