To measure inventory management performance, a company monitors its inventory turnover ratio. Listed below are selected data from the company's accounting records: Current year $2,525,000 40% Beginning finished goods inventory for the current year was 15% of the prior-year's annual sales volume at cost, and ending finished goods inventory was 22% of the current-year's annual sales volume at cost. What was the company's inventory turnover at the end of the current period? (D) Annual sales Gross profit percent Prior year $2,125,000 35%

To measure inventory management performance, a company monitors its inventory turnover ratio. Listed below are selected data from the company's accounting records: Current year $2,525,000 40% Beginning finished goods inventory for the current year was 15% of the prior-year's annual sales volume at cost, and ending finished goods inventory was 22% of the current-year's annual sales volume at cost. What was the company's inventory turnover at the end of the current period? (D) Annual sales Gross profit percent Prior year $2,125,000 35%

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

During the current year, Peach Industries' reports sales of $184,000 and an average sale period of 50 days. The inventory balance is $11,000 at the beginning of the year and $13,000 at the end of the year. What is Peach's gross margin percentage? Round to one decimal point. O 42.8% O 44.5% O 47.6% O 52.4% 56.2%
A company reports the following: Cost of merchandise sold $207,320 Average merchandise inventory 51,830 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover fill in the blank 1 b. Number of days' sales in inventory fill in the blank 2 days
What was Paloma Company's approximate inventory turnover ratio if the beginning inventory was $5,000, and the ending inventory was $2,000, the total sales during the period were $60,000, and the gross profit was $22,000?
Sandhill Inc. reported inventory at the beginning of the current year of $440000 and at the end of the current year of $491000. If net sales for the current year are $4829200 and the corresponding cost of sales totaled $3724000, what is the inventory turnover for the current year? 10.37. 7.58. 9.84. 8.00.
Ranns Supply uses a perpetual inventory system. On January 1, its inventory account had a begin-ning balance of $6,450,000. Ranns engaged in the following transactions during the year: 1. Purchased merchandise inventory for $9,500,000.2. Generated net sales of $26,000,000.3. Recorded inventory shrinkage of $10,000 after taking a physical inventory at year-end.4. Reported gross profit for the year of $15,000,000 in its income statement.a. At what amount was Cost of Goods Sold reported in the company’s year-end incomestatement?b. At what amount was Merchandise Inventory reported in the company’s year-end balancesheet? c. Immediately prior to recording inventory shrinkage at the end of the year, what was the bal-ance of the Cost of Goods Sold account? What was the balance of the Merchandise Inventory account?
A company reports the following: Cost of goods sold $3,960,250 Average inventory 255,500 Round your answers to one decimal place. a. Determine the inventory turnover. Assume a 365-day year.fill in the blank 1 b. Determine the number of days' sales in inventory. Assume a 365-day year.fill in the blank 2
Ivanhoe Inc. reported inventory at the beginning of the current year of $260000 and at the end of the current year of $311000. If net sales for the current year are $3929200 and the corresponding cost of sales totaled $2812175, what is the inventory turnover for the current year?
Inventory at the beginning of the year cost $13,400. During the year, the company purchased(on account) inventory costing $84,000. Inventory that had cost $80,000 was sold on account for$95,000. At the end of the year, inventory was counted and its cost was determined to be $17,400.( a ) Show the cost of goods sold equation using these numbers. ( b ) What was the dollar amount ofGross Profit? ( c ) Prepare journal entries to record these transactions, assuming a perpetual inventory system is used
Endor Company begins the year with $110,000 of goods in inventory. At year-end, the amount in inventory has increased to $121,000. Cost of goods sold for the year is $1,500,000. Compute Endor's inventory turnover and days' sales in inventory. Assume there are 365 days in the year. Inventory Turnover Choose Numerator: 1 Choose Denominator: 1 1 Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: X 1 X 1 X Days 365 365 Inventory Turnover Inventory Turnover times = = = Days' Sales in Inventory Days' sales in inventory days
What is the Weighted average cost per unit?
Based on the following information compute (a) inventory turnover, (b) average daily cost of merchandise sold, and (c) days' sales in inventory for the current year. Use a 365-day year. Item Prior Year Current Year Cost of merchandise sold $172,900 $215,000 Inventory 18,000 12,000 If required, round your answers to two decimal places. (a) Inventory turnover times (b) Average daily cost of merchandise sold $ (c) Days' sales in inventory days (d) If an inventory turnover of 12 is average for the industry, how is this company doing?
The cost of goods sold for Veltron International last year amounted to $547,800, and the average inventory at cost was $365,200. The published inventory turnover at cost is 6.6. Calculate the inventory turnover at cost, and if it is less than the published rate, calculate the target average inventory at cost (in $). (If the actual turnover is greater than the published rate, enter "above" for target average inventory.) Inventory turnover at cost Target average inventory at cost $