Annual Report: Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions. Inventory turnover ratio : Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula: Inventory turnover = Cost of goods sold Average inventory To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

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Answer 1

Question

Chapter 6, Problem 6.3EYCT

(a) (1)

To determine

Annual Report:

Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions.

Inventory turnover ratio:

Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

(2)

To determine

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

Calculate the days in inventory of Company A and Company WM for 2014.

(b)

To determine

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

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Wesley's Towing ServiceCorrected Trial BalanceSeptember 30, 20XX Account Title Debit Credit Cash $37,421 Accounts Receivable $970 Supplies $200 Prepaid Insurance $2,300 Equipment $10,000 Accounts Payable $5,000 Wesley, Capital $20,500 Wesley, Drawing $320 Repair Fees $9,000 Wages Expense $6,500 Rent Expense $1,400 Advertising Expense $450 Utilities Expense $500 Total $58,761 $58,761 Cash: The debit balance of Cash is $37,421, as given in the problem. Accounts Receivable: The debit balance of Accounts Receivable is $970, as given in the problem. Supplies: The debit balance of Supplies is $200, as given in the problem. Prepaid Insurance: The debit balance of Prepaid Insurance is $2,300, as given in the problem. Equipment: The debit balance of Equipment is $10,000, as given in the problem. Accounts Payable: The credit balance of Accounts Payable is $5,000. This is because the problem states that a $500 payment to a creditor…

General Accounting question

Please explain the solution to this general accounting problem using the correct accounting principles.

Answer 2

Question

Chapter 6, Problem 6.3EYCT

(a) (1)

To determine

Annual Report:

Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions.

Inventory turnover ratio:

Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

(2)

To determine

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

Calculate the days in inventory of Company A and Company WM for 2014.

(b)

To determine

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

Expert Solution & Answer

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Answer 3

Question

Chapter 6, Problem 6.3EYCT

(a) (1)

To determine

Annual Report:

Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions.

Inventory turnover ratio:

Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

(2)

To determine

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

Calculate the days in inventory of Company A and Company WM for 2014.

(b)

To determine

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.3EYCT

(a) (1)

To determine

Annual Report:

Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions.

Inventory turnover ratio:

Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

(2)

To determine

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

Calculate the days in inventory of Company A and Company WM for 2014.

(b)

To determine

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.3EYCT

(a) (1)

To determine

Annual Report:

Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions.

Inventory turnover ratio:

Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

(2)

To determine

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

Calculate the days in inventory of Company A and Company WM for 2014.

(b)

To determine

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

Answer 6

Chapter 6, Problem 6.3EYCT

(a) (1)

To determine

Annual Report:

Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions.

Inventory turnover ratio:

Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

Answer 7

Chapter 6, Problem 6.3EYCT

(a) (1)

To determine

Annual Report:

Annual report is a comprehensive financial report that shows all the business activities, that takes place throughout the previous financial year. Its purpose is to provide the complete information of a company’s financial activities, to its users in order to help them analyze, and take well informed decisions.

Inventory turnover ratio:

Inventory turnover ratio is a financial measure that is used to evaluate as to how many times a company sells or uses its inventory, during an accounting period. It is calculated by using the following formula:

Inventory turnover = Cost of goods soldAverage inventory

To Compute: The inventory turnover and days in inventory of Company A, and Company WM for 2015.

Answer 8

(2)

To determine

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

Calculate the days in inventory of Company A and Company WM for 2014.

Answer 9

(2)

To determine

Days’ sales in inventory: Days’ sales in inventory are used to determine number of days a particular company takes to make sales of the inventory available with them.

Days' sales in inventory=Days in accounting periodInventory turnover

Calculate the days in inventory of Company A and Company WM for 2014.

Answer 10

(b)

To determine

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

Answer 11

(b)

To determine

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 6 - Prob. 1Q Ch. 6 - 2. An item must possess two characteristics to be...Ch. 6 - Prob. 3Q Ch. 6 - 4. (a) Rochelle Company ships merchandise to Jay...Ch. 6 - 5. Katz Hat Shop received a shipment of hats for...Ch. 6 - 6. Explain the difference between the terms FOB...Ch. 6 - 7. Kyle Ebert believes that the allocation of cost...Ch. 6 - 8. What is the major advantage and major...Ch. 6 - 9. “The selection of an inventory cost flow method...Ch. 6 - 10. Winch assumed inventory cost flow...

Concept explainers

To Describe: The conclusions concerning the management of the inventory can be drawn from the above data.

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Chapter 6 Solutions