Anka, Inc. provided the following data for 2016 and 2017: Inventory December 31, 2015 $404,800 December 31, 2016 $571,200 December 31, 2017 $365,000 Cost of goods sold 2016 $1,284,000 2017 $1,448,000 Gross margin $680,000 $820,000 2016 2017 (a) Calculate the inventory turnover ratio for 2016 and 2017. (b) Calculate the gross margin return on inventory investment for 2016 and 2017.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 16PB: Use the following information relating to Medinas Company to calculate the inventory turnover ratio,...
icon
Related questions
Question

Sub. Account

Anka, Inc. provided the following data for 2016 and 2017:
Inventory
December 31, 2015 $404,800
December 31, 2016 $571,200
December 31, 2017 $365,000
Cost of goods sold
2016
$1,284,000
2017
$1,448,000
Gross margin
$680,000
$820,000
2016
2017
(a) Calculate the inventory turnover ratio for 2016 and 2017.
(b) Calculate the gross margin return on inventory investment for 2016 and 2017.
Transcribed Image Text:Anka, Inc. provided the following data for 2016 and 2017: Inventory December 31, 2015 $404,800 December 31, 2016 $571,200 December 31, 2017 $365,000 Cost of goods sold 2016 $1,284,000 2017 $1,448,000 Gross margin $680,000 $820,000 2016 2017 (a) Calculate the inventory turnover ratio for 2016 and 2017. (b) Calculate the gross margin return on inventory investment for 2016 and 2017.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,