Using the numbers provided below, calculate the Inventory Turnover Ratio. The inventory turnover ratio is calculated by dividing the cost of goods by average inventory (cogs / average inventory) Financial Statements for 2020 Balance Sheet Assets Cash Accounts Receivable, Net Inventory Prepaid Rent Equipment, Net Land Total Assets Liabilities and Equity Accounts Payable Wages Payable Income Tax Payable Long-Term Debt Contributed Capital Retained Earnings Total Liabilities and Equity O 3.69 O 4.43 O 5.38 O 8.92 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2020 107,200 $ 48,000 $ 42,000 $ 35,000 $ 70,000 $ 30,000 $ 332,200 $ 2020 23,000 $ 16,000 $ 6,000 $ 38,000 $ 150,000 $ 99,200 $ 332,200 $ 2019 64,000 31,000 32,000 27,000 80,000 55,000 289,000 2019 26,000 18,000 9,000 50,000 150,000 36,000 289,000 Income Statement Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Bad Debt Expense R&D Expense Depreciation Expense Interest Expense Loss on Sale of Land Income Tax Expense Net Income $ 375,000 $ (199,000) $ $ $ iseses S $ $ $ $ $ $ (40,000) (18,000) (5,000) (22,000) (10,000) (4,000) (6,000) (7,800) 63,200

Using the numbers provided below, calculate the Inventory Turnover Ratio. The inventory turnover ratio is calculated by dividing the cost of goods by average inventory (cogs / average inventory) Financial Statements for 2020 Balance Sheet Assets Cash Accounts Receivable, Net Inventory Prepaid Rent Equipment, Net Land Total Assets Liabilities and Equity Accounts Payable Wages Payable Income Tax Payable Long-Term Debt Contributed Capital Retained Earnings Total Liabilities and Equity O 3.69 O 4.43 O 5.38 O 8.92 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 2020 107,200 $ 48,000 $ 42,000 $ 35,000 $ 70,000 $ 30,000 $ 332,200 $ 2020 23,000 $ 16,000 $ 6,000 $ 38,000 $ 150,000 $ 99,200 $ 332,200 $ 2019 64,000 31,000 32,000 27,000 80,000 55,000 289,000 2019 26,000 18,000 9,000 50,000 150,000 36,000 289,000 Income Statement Sales Revenue Cost of Goods Sold Wages Expense Rent Expense Bad Debt Expense R&D Expense Depreciation Expense Interest Expense Loss on Sale of Land Income Tax Expense Net Income $ 375,000 $ (199,000) $ $ $ iseses S $ $ $ $ $ $ (40,000) (18,000) (5,000) (22,000) (10,000) (4,000) (6,000) (7,800) 63,200

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 7QE

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