Universal Sports Supply began the year with an inventory balance of $72,000 and a year-end balance of $68,000. Sales of $720,000 generate a gross profit of $240.000 Calculate the inventory turnover ratio for the year. (Round your final answer to 1 decimal place.) Universal Sports Supply Inventory Turnover Ratio de times

Universal Sports Supply began the year with an inventory balance of $72,000 and a year-end balance of $68,000. Sales of $720,000 generate a gross profit of $240.000 Calculate the inventory turnover ratio for the year. (Round your final answer to 1 decimal place.) Universal Sports Supply Inventory Turnover Ratio de times

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Sandhill Inc. reported inventory at the beginning of the current year of $320000 and at the end of the current year of $371000. If net sales for the current year are $4229200 and the corresponding cost of sales totaled $3126775, what is the inventory turnover for the current year?
Perez Corporation has the following financial data for the years 20X1 and 20X2: Sales Cost of goods sold Inventory 20X1 20X2 20X1 $ 5,221,000 3,632,000 454,000 a. Compute the inventory turnover for each year using the formula Sales/Inventory. Note: Round your answers to 1 decimal place. Inventory Turnover Ratio times times 20X2 $ 6,578,000 4,862,000 572,000 b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year. Note: Round your answers to 1 decimal place.
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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
Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis ClarkInventory (beginning) $ 24,000 $ 50,000Inventory (ending) 18,000 60,000Purchases 261,000 235,000Purchase returns 15,000 60,000Required:1. Calculate cost of goods sold for each company.2. Calculate the inventory turnover ratio for each company.3. Calculate the average days in inventory for each company.4. Explain which company appears to be managing its inventory more efficiently.
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Marigold Inc. had beginning inventory of $9,600 at cost and $16,000 at retail. Net purchases were $96,000 at cost and $136,000 at retail. Net markups were $8,000, net markdowns were $5,600, and sales revenue was $117,600. Assume the price level increased from 100 at the beginning of the year to 115 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0 decimal places, e.g. 28,987.) Ending inventory using the dollar-value LIFO retail method
Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue Cost of sales Inventory Total assets a) What is its weeks of supply? weeks (round your response to two decimal places). b) What is Arrow's inventory turnover? times per year (round your response to two decimal places). $16,830 $14,240 $920 $9,270 c) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, is
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