Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter D, Problem 5QC
Liberty’s inventory turnover during 2019 was (amounts rounded)
- a. 6 times.
- b. 7 times.
- c. 8 times.
- d. not determinable from the data given.
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The following information was available for the year ended December 31, 2019:
Net sales
$821,250
Cost of goods sold
Average accounts receivable for the year
Accounts receivable at year-end
Average inventory for the year
Inventory at year-end
602, 250
39,100
30,400
166,000
157,575
Required:
a. Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places.)
b. Calculate the number of days' sales in inventory for 2019, using year-end inventories. (Use 365 days a year. Round your answer to
1 decimal place.)
c. Calculate the accounts receivable turnover for 2019. (Round your answer to 1 decimal place.)
d. Calculate the number of days' sales in accounts receivable for 2019, using year-end accounts receivable. (Use 365 days a year.
Round your answer to 1 decimal place.)
a. Inventory turnover
b. Number of days' sales in Inventory
c. Accounts receivable turnover
d. Number of days' sales in accounts receivable
times
days
times
days
Wang Company's average inventory for 2019 was $75,000 and its inventory turnover for 2019 was 6.0; Wang's 2019 days' sales in inventory (computed to one decimal place) is:
Select one:
a. 12.7 days
b. 60.8 days
c. 68.5 days
d. 53.8 days
e. None of the above
The condensed financial statements of Blossom Company for the years 2019 and 2020 are presented below.
BLOSSOM COMPANY
Balance Sheets
December 31 (in thousands)
2020
2019
Current assets
Cash and cash equivalents
$330
$360
Accounts receivable (net)
630
560
Inventory
580
510
Prepaid expenses
130
160
Total current assets
1,670
1590
Property, plant, and equipment (net)
410
380
Investments
170
170
530
510
Intangibles and other assets
$2,780 $2,650
Total assets
$980
$950
Current liabilities
Long-term liabilities
600
500
Stockholders' equity-common
1,200
1,200
Total liabilities and stockholders equity
$2780 $2,650
BLOSSOM COMPANY
Income Statements
For the Year Ended December 31 (in thousands)
2019
2020
$3,920 $3,580
Sales revenue
Costs and expenses
Cost of goods sold
1,130
1050
Selling & administrative expenses
2400
2,330
Interest expense
10
20
Total costs and expenses
3,540
3400
Income before income taxes
380
180
Income tax expense
152
72
$228
$108
Net income
Chapter D Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. D - Prob. 1TICh. D - Prob. 2TICh. D - Prob. 3TICh. D - Prob. 4TICh. D - Prob. 5TICh. D - Prob. 6TICh. D - Prob. 7TICh. D - Prob. 8TICh. D - Prob. 9TICh. D - Prob. 10TI
Ch. D - Prob. 1QCCh. D - Prob. 2QCCh. D - Vertical analysis of Libertys balance sheet for...Ch. D - Prob. 4QCCh. D - Libertys inventory turnover during 2019 was...Ch. D - Prob. 6QCCh. D - Prob. 7QCCh. D - Prob. 8QCCh. D - Prob. 9QCCh. D - Prob. 10QCCh. D - Prob. 1RQCh. D - Prob. 2RQCh. D - Prob. 3RQCh. D - Prob. 4RQCh. D - Prob. 5RQCh. D - Prob. 6RQCh. D - Prob. 7RQCh. D - Prob. 8RQCh. D - Prob. 9RQCh. D - Prob. 10RQCh. D - Prob. 11RQCh. D - Prob. 12RQCh. D - Prob. 13RQCh. D - Prob. 1SECh. D - Verifine Corp. reported the following on its...Ch. D - Prob. 3SECh. D - Prob. 4SECh. D - Prob. 5SECh. D - Prob. 6SECh. D - Prob. 7SECh. D - Accels Companies, a home improvement store chain,...Ch. D - Prob. 9SECh. D - Prob. 10SECh. D - Prob. 11SECh. D - Prob. 12SECh. D - Prob. 13ECh. D - Prob. 14ECh. D - Prob. 15ECh. D - Refer to the data presented for Mulberry Designs,...Ch. D - Prob. 17ECh. D - Prob. 18ECh. D - Prob. 19ECh. D - Micatin, Inc.s comparative income statement...Ch. D - Prob. 21ECh. D - Prob. 22ECh. D - Prob. 23APCh. D - Prob. 24APCh. D - Prob. 25APCh. D - Prob. 26APCh. D - Comparative financial statement data of Sanfield,...Ch. D - Prob. 28APCh. D - Prob. 29APCh. D - Prob. 30BPCh. D - Prob. 31BPCh. D - Prob. 32BPCh. D - Prob. 33BPCh. D - Prob. 34BPCh. D - Prob. 35BPCh. D - In its annual report, XYZ Athletic Supply, Inc....Ch. D - Prob. 38PCh. D - Lance Berkman is the controller of Saturn, a dance...Ch. D - Prob. 1EICh. D - Prob. 1FSC
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