The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation. Introduction: Inventory turnover: It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

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Answer 1

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

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Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows: (refer to the images) Required:a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratiob. Comment on each of the ratios calculated in part (a) above.

Answer 2

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

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Answer 3

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

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Answer 4

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

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Answer 5

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 6

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 7

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 8

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 9

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 10

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 11

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Solution Summary: The author calculates the inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

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