FUND  ACCOUNTING PRINCIPLES CONNECT
FUND ACCOUNTING PRINCIPLES CONNECT
25th Edition
ISBN: 9781265342395
Author: Wild
Publisher: MCG
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Chapter 6, Problem 3AA
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 1:

Inventory Turnover Ratio and Days Sale in Inventory for the previous two years

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 2:

If there is a favorable or unfavorable trend over the previous two years

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

Requirement 3:

If Inventory Turnover Ratio for the current year underperforms or overperforms the industry average of 15

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Chapter 6 Solutions

FUND ACCOUNTING PRINCIPLES CONNECT

Ch. 6 - Perpetual: Assigning costs with FIFO Trey Monson...Ch. 6 - QS6-11 Perpetual Inventory costing with LIFO Refer...Ch. 6 - QS 6-12 Perpetual: Inventory costing with weighted...Ch. 6 - QS6.13 Perpetual Inventory costing with specific...Ch. 6 - Periodic: Inventory costing with FIFO P3 Refer to...Ch. 6 - Periodic Inventory costing with LIFO P3 Refer to...Ch. 6 - Periodic: Inventory costing with weighted average...Ch. 6 - Periodic: Inventory costing with specific...Ch. 6 - QS 6-18 Contrasting inventory costing methods...Ch. 6 - Inventory errors A2 In taking a physical inventory...Ch. 6 - Prob. 21QSCh. 6 - Prob. 22QSCh. 6 - Prob. 23QSCh. 6 - Prob. 24QSCh. 6 - Prob. 25QSCh. 6 - Prob. 26QSCh. 6 - Exercise 6-1 Inventory ownership C1 1. At...Ch. 6 - Exercise 6-2 Inventory costs C2 Walberg...Ch. 6 - Exercise 6-3 Perpetual Inventory costing methods...Ch. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Exercise 6-5A Periodic: Inventory costing P3 Refer...Ch. 6 - Prob. 7ECh. 6 - Exercise 6-7 Perpetual Inventory costing...Ch. 6 - Exercise 6.8 Specific identification Refer to the...Ch. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Prob. 18ECh. 6 - Prob. 19ECh. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Problem 6-1A Perpetual: Alternative cost...Ch. 6 - Prob. 2PSACh. 6 - Prob. 3PSACh. 6 - Prob. 4PSACh. 6 - Problem 6-5A Lower of cost or market P2 A physical...Ch. 6 - Prob. 6PSACh. 6 - Prob. 7PSACh. 6 - Prob. 8PSACh. 6 - Prob. 9PSACh. 6 - Prob. 10PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - Prob. 4PSBCh. 6 - Prob. 5PSBCh. 6 - Prob. 6PSBCh. 6 - Prob. 7PSBCh. 6 - Prob. 8PSBCh. 6 - Prob. 9PSBCh. 6 - Prob. 10PSBCh. 6 - Prob. 6.1SPCh. 6 - Prob. 6.2SPCh. 6 - AA 6-1 Use Apple's financial statements in...Ch. 6 - AA 6-2 Comparative figures for Apple and Google...Ch. 6 - Prob. 3AACh. 6 - Prob. 1DQCh. 6 - Where is the amount of merchandise inventory...Ch. 6 - If costs are declining, will the LIFO or FIFO...Ch. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - BTN 6-3 Golf Challenge Corp. is a retail sports...Ch. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTNCh. 6 - Prob. 5BTN
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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License