Compute the inventory turnover ratio based on the following assumptions: a. Those presented in the preceding table. b. No change from the beginning of the year inventory balance.

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Answer 1

Question

Chapter 7, Problem 7P

1.

To determine

Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

2.

To determine

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

3.

To determine

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

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I need a expert not AI Step Amount Category Inventory 1. Beginning Balance, January 1 28,000 Beginning Balance Raw Materials 2. (+) Purchases (RM Purchases) 220,000 Addition Raw Materials 3. (-) Ending Balance 20,000 Ending Balance Raw Materials 4. = Transferred Out (RM used) (228,000) Transferred Out Raw Materials 5. (+) Direct Labor (152,000) Transferred Out Direct Labor 6. (+) Fixed Overhead 300,000 Addition Overhead 7. (+) Variable Overhead - Addition Overhead 8. = Total Factory Overhead (390,000) Transferred Out Overhead 9. Beginning Balance, January 1 40,000 Beginning Balance WIP 10. (+) Additions (RM used) 228,000 Addition WIP 11. (+) Additions (DL used) 152,000 Addition WIP 12. (+) Additions (OH used) 390,000 Addition WIP 13. (-) Ending Balance, December 31 55,000 Ending Balance WIP 14. = Transferred Out (COGM) (755,000)…

Step Amount Category Inventory 1. Beginning Balance, January 1 28,000 Beginning Balance Raw Materials 2. (+) Purchases (RM Purchases) 220,000 Addition Raw Materials 3. (-) Ending Balance 20,000 Ending Balance Raw Materials 4. = Transferred Out (RM used) (228,000) Transferred Out Raw Materials 5. (+) Direct Labor (152,000) Transferred Out Direct Labor 6. (+) Fixed Overhead 300,000 Addition Overhead 7. (+) Variable Overhead - Addition Overhead 8. = Total Factory Overhead (390,000) Transferred Out Overhead 9. Beginning Balance, January 1 40,000 Beginning Balance WIP 10. (+) Additions (RM used) 228,000 Addition WIP 11. (+) Additions (DL used) 152,000 Addition WIP 12. (+) Additions (OH used) 390,000 Addition WIP 13. (-) Ending Balance, December 31 55,000 Ending Balance WIP 14. = Transferred Out (COGM) (755,000) Transferred Out WIP 15.…

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Answer 2

Question

Chapter 7, Problem 7P

1.

To determine

Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

2.

To determine

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

3.

To determine

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Chapter 7, Problem 7P

1.

To determine

Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

2.

To determine

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

3.

To determine

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 7, Problem 7P

1.

To determine

Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

2.

To determine

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

3.

To determine

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 7, Problem 7P

1.

To determine

Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

2.

To determine

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

3.

To determine

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

Answer 6

Chapter 7, Problem 7P

1.

To determine

Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

Answer 7

Chapter 7, Problem 7P

1.

To determine

Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

Answer 8

2.

To determine

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

Answer 9

2.

To determine

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

Answer 10

3.

To determine

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

Answer 11

3.

To determine

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

Answer 12

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Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 7 - Prob. 3Q Ch. 7 - 4. Define goods available for sale. How does it...Ch. 7 - 5. Define beginning inventory and ending...Ch. 7 - 6. The chapter discussed tour inventory costing...Ch. 7 - 7. Explain how income can be manipulated when the...Ch. 7 - 8. Contrast the effects of LIFO versus FIFO on...Ch. 7 - 9. Contrast the income statement effect of LIFO...Ch. 7 - Prob. 10Q Ch. 7 - Explain briefly the application of the lower of...Ch. 7 - 12. When a perpetual inventory system is used,...

Compute the inventory turnover ratio based on the following assumptions: a. Those presented in the preceding table. b. No change from the beginning of the year inventory balance.

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Compute the inventory turnover ratio based on the following assumptions:

a. Those presented in the preceding table.

b. No change from the beginning of the year inventory balance.

Compute the effect of the projected change in the balance in inventory on cash flow from operating activities for the year.

Write a memo explaining about the increase in inventory turnover ratio and increase in cash flow from operating activities. Also explain how this would increase the benefits of the company.

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