Toys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021. Sales revenue $ 74,800 Inventory (Mar. 31, 2021) $ 1,200 Advertising expense 5,900 Insurance expense 2,050 Rent expense 3,800 Sales discounts 2,750 Gain on sale of building 7,000 Salaries expense 8,900 Inventory (Mar. 1, 2021) 2,550 Income tax expense 3,700 Cost of goods sold 35,550 2-a. Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio = =
Toys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021. Sales revenue $ 74,800 Inventory (Mar. 31, 2021) $ 1,200 Advertising expense 5,900 Insurance expense 2,050 Rent expense 3,800 Sales discounts 2,750 Gain on sale of building 7,000 Salaries expense 8,900 Inventory (Mar. 1, 2021) 2,550 Income tax expense 3,700 Cost of goods sold 35,550 2-a. Calculate the inventory turnover ratio for the month of March. Inventory Turnover Ratio = =
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Toys “R” Us sells a variety of children’s toys, games, books, and accessories. Assume that a local store has the following amounts for the month of March 2021.
| Sales revenue | $ | 74,800 | Inventory (Mar. 31, 2021) | $ | 1,200 | ||
| Advertising expense | 5,900 | Insurance expense | 2,050 | ||||
| Rent expense | 3,800 | Sales discounts | 2,750 | ||||
| Gain on sale of building | 7,000 | Salaries expense | 8,900 | ||||
| Inventory (Mar. 1, 2021) | 2,550 | Income tax expense | 3,700 | ||||
| Cost of goods sold | 35,550 | ||||||
2-a. Calculate the inventory turnover ratio for the month of March.
|
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