Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less. Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year. Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period. Requirement 1: Inventories reported by Apple on September 30, 2017 and September 24,2016.

Question

financial accounting

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 1AA

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 1:

Inventories reported by Apple on September 30, 2017 and September 24,2016.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 2:

Inventories reported by Apple on September 30, 2017 and September 24,2016 as a percentage of Current Assets.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 3:

If Apple would prefer to have inventories as a lower or higher percentage of current assets.

To determine

Concept Introduction:

Ratio Analysis:

Ratio analysis is a study of several key metrics of a company based on the data presented in its' financial statements with an objective to evaluate the financial health of a company.

It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

Inventory turnover − A measure of the relation between the turnover and inventory measured in number of times.

It seeks to measure the relation of the inventory rolled over in proportion to the total turnover and is an indicator of how much of the inventory is fast moving in relation to the total turnover.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Days Sale in Inventory − A measure of the total outstanding collections for credit sales in terms of inventory.

It is calculated to understand how many days sales in terms of inventory are available to the company.

Days' Sale In Inventory = 365 / Inventory Turnover Ratio

Requirement 4:

Inventory Turnover Ratio and Days Sale in Inventory as on 30 September, 2017

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

financial accounting

Financial accounting

Need a solution

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 1AA

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 1:

Inventories reported by Apple on September 30, 2017 and September 24,2016.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 2:

Inventories reported by Apple on September 30, 2017 and September 24,2016 as a percentage of Current Assets.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 3:

If Apple would prefer to have inventories as a lower or higher percentage of current assets.

To determine

Concept Introduction:

Ratio Analysis:

Ratio analysis is a study of several key metrics of a company based on the data presented in its' financial statements with an objective to evaluate the financial health of a company.

It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

Inventory turnover − A measure of the relation between the turnover and inventory measured in number of times.

It seeks to measure the relation of the inventory rolled over in proportion to the total turnover and is an indicator of how much of the inventory is fast moving in relation to the total turnover.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Days Sale in Inventory − A measure of the total outstanding collections for credit sales in terms of inventory.

It is calculated to understand how many days sales in terms of inventory are available to the company.

Days' Sale In Inventory = 365 / Inventory Turnover Ratio

Requirement 4:

Inventory Turnover Ratio and Days Sale in Inventory as on 30 September, 2017

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 1AA

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 1:

Inventories reported by Apple on September 30, 2017 and September 24,2016.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 2:

Inventories reported by Apple on September 30, 2017 and September 24,2016 as a percentage of Current Assets.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 3:

If Apple would prefer to have inventories as a lower or higher percentage of current assets.

To determine

Concept Introduction:

Ratio Analysis:

Ratio analysis is a study of several key metrics of a company based on the data presented in its' financial statements with an objective to evaluate the financial health of a company.

It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

Inventory turnover − A measure of the relation between the turnover and inventory measured in number of times.

It seeks to measure the relation of the inventory rolled over in proportion to the total turnover and is an indicator of how much of the inventory is fast moving in relation to the total turnover.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Days Sale in Inventory − A measure of the total outstanding collections for credit sales in terms of inventory.

It is calculated to understand how many days sales in terms of inventory are available to the company.

Days' Sale In Inventory = 365 / Inventory Turnover Ratio

Requirement 4:

Inventory Turnover Ratio and Days Sale in Inventory as on 30 September, 2017

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 1AA

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 1:

Inventories reported by Apple on September 30, 2017 and September 24,2016.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 2:

Inventories reported by Apple on September 30, 2017 and September 24,2016 as a percentage of Current Assets.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 3:

If Apple would prefer to have inventories as a lower or higher percentage of current assets.

To determine

Concept Introduction:

Ratio Analysis:

Ratio analysis is a study of several key metrics of a company based on the data presented in its' financial statements with an objective to evaluate the financial health of a company.

It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

Inventory turnover − A measure of the relation between the turnover and inventory measured in number of times.

It seeks to measure the relation of the inventory rolled over in proportion to the total turnover and is an indicator of how much of the inventory is fast moving in relation to the total turnover.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Days Sale in Inventory − A measure of the total outstanding collections for credit sales in terms of inventory.

It is calculated to understand how many days sales in terms of inventory are available to the company.

Days' Sale In Inventory = 365 / Inventory Turnover Ratio

Requirement 4:

Inventory Turnover Ratio and Days Sale in Inventory as on 30 September, 2017

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 5

Chapter 6, Problem 1AA

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 1:

Inventories reported by Apple on September 30, 2017 and September 24,2016.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 2:

Inventories reported by Apple on September 30, 2017 and September 24,2016 as a percentage of Current Assets.

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 3:

If Apple would prefer to have inventories as a lower or higher percentage of current assets.

To determine

Concept Introduction:

Ratio Analysis:

Ratio analysis is a study of several key metrics of a company based on the data presented in its' financial statements with an objective to evaluate the financial health of a company.

It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

Inventory turnover − A measure of the relation between the turnover and inventory measured in number of times.

It seeks to measure the relation of the inventory rolled over in proportion to the total turnover and is an indicator of how much of the inventory is fast moving in relation to the total turnover.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Days Sale in Inventory − A measure of the total outstanding collections for credit sales in terms of inventory.

It is calculated to understand how many days sales in terms of inventory are available to the company.

Days' Sale In Inventory = 365 / Inventory Turnover Ratio

Requirement 4:

Inventory Turnover Ratio and Days Sale in Inventory as on 30 September, 2017

Answer 6

Chapter 6, Problem 1AA

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 1:

Inventories reported by Apple on September 30, 2017 and September 24,2016.

Answer 7

Chapter 6, Problem 1AA

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 1:

Inventories reported by Apple on September 30, 2017 and September 24,2016.

Answer 8

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 2:

Inventories reported by Apple on September 30, 2017 and September 24,2016 as a percentage of Current Assets.

Answer 9

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 2:

Inventories reported by Apple on September 30, 2017 and September 24,2016 as a percentage of Current Assets.

Answer 10

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 3:

If Apple would prefer to have inventories as a lower or higher percentage of current assets.

Answer 11

To determine

Concept Introduction:

Current assets are Assets of the business that are realizable or convertible to cash within a period of one year or less.

Examples of Current assets include Stocks and Inventories, Debtors and Investments made for a period of less than one year.

Inventories refer to the closing balance of stock of raw materials, work in progress and finished goods of a company at the end of a particular reporting period.

Requirement 3:

If Apple would prefer to have inventories as a lower or higher percentage of current assets.

Answer 12

To determine

Concept Introduction:

Ratio Analysis:

Ratio analysis is a study of several key metrics of a company based on the data presented in its' financial statements with an objective to evaluate the financial health of a company.

It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

Inventory turnover − A measure of the relation between the turnover and inventory measured in number of times.

It seeks to measure the relation of the inventory rolled over in proportion to the total turnover and is an indicator of how much of the inventory is fast moving in relation to the total turnover.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Days Sale in Inventory − A measure of the total outstanding collections for credit sales in terms of inventory.

It is calculated to understand how many days sales in terms of inventory are available to the company.

Days' Sale In Inventory = 365 / Inventory Turnover Ratio

Requirement 4:

Inventory Turnover Ratio and Days Sale in Inventory as on 30 September, 2017

Answer 13

To determine

Concept Introduction:

Ratio Analysis:

Ratio analysis is a study of several key metrics of a company based on the data presented in its' financial statements with an objective to evaluate the financial health of a company.

It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

Inventory turnover − A measure of the relation between the turnover and inventory measured in number of times.

It seeks to measure the relation of the inventory rolled over in proportion to the total turnover and is an indicator of how much of the inventory is fast moving in relation to the total turnover.

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Days Sale in Inventory − A measure of the total outstanding collections for credit sales in terms of inventory.

It is calculated to understand how many days sales in terms of inventory are available to the company.

Days' Sale In Inventory = 365 / Inventory Turnover Ratio

Requirement 4:

Inventory Turnover Ratio and Days Sale in Inventory as on 30 September, 2017

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 17

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 18

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 19

Trending nowThis is a popular solution!

Answer 20

Trending nowThis is a popular solution!

Answer 21

Trending nowThis is a popular solution!

Answer 22

Trending now

Answer 23

This is a popular solution!

Answer 24

See solution

Check out sample textbook solution

Answer 25

Ch. 6 - Inventory ownership Homestead Crafts, a...Ch. 6 - QS 6-2 Inventory costs C2 A car dealer acquires a...Ch. 6 - Prob. 3QS Ch. 6 - Prob. 4QS Ch. 6 - Perpetual: Inventory costing with FIFO P1 A...Ch. 6 - Perpetual: Inventory costing with LIFO Refer to...Ch. 6 - Perpetual Inventory costing with weighted average...Ch. 6 - Periodic: Inventory costing with FIFO P3 Refer to...Ch. 6 - Periodic: Inventory costing with LIFO Refer to the...Ch. 6 - Periodic: Inventory costing with weighted average...

Concept explainers

Videos

Chapter 6 Solutions