FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- The following information is available for Marin Inc. for three recent fiscal years. Inventory Net sales Cost of goods sold (a) Inventory Turnover Days in Inventory 2022 Gross Profit Rate 2021 $565,000 $572,000 $320,000 1,895,000 1,784,000 1,421,250 1,159,600 Calculate the inventory turnover, days in inventory, and gross profit rate for 2022 and 2021. (Round Inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%) 2022 2020 1,360,000 930,000 times % days 2021 times days %arrow_forwardFind the inventory turnover at retail of Walker Manufacturing. The starting inventory at retail was $632,300 and the ending inventory at retail was $421,600. Sales for the year totaled $2,388,870. Round your answer to the nearest tenth.arrow_forwardInventory analysisarrow_forward
- Question Content Area Based on the following data for the current year, what is the inventory turnover (rounded to one decimal place)? Sales on account during year $586,967 Cost of merchandise sold during year 176,594 Accounts receivable, beginning of year 46,824 Accounts receivable, end of year 52,382 Merchandise inventory, beginning of year 31,526 Merchandise inventory, end of year 40,442 a.21.2 b.4.9 c.16.3 d.3.9arrow_forwardA company reports the following: Cost of goods sold $3,960,250 Average inventory 255,500 Round your answers to one decimal place. a. Determine the inventory turnover. Assume a 365-day year.fill in the blank 1 b. Determine the number of days' sales in inventory. Assume a 365-day year.fill in the blank 2arrow_forwardInventory Analysis The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $788,400 $827,800 Beginning inventories 51,324 55,050 Cost of goods sold 394,200 459,900 Ending inventories 46,524 51,324 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover 2. Number of days' sales in inventory days days b. The inventory position of the business has The inventory turnover has while the number of days' sales in inventory hasarrow_forward
- 3arrow_forwardInventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $788,400 $827,800 Beginning inventories 50,784 39,314 Cost of merchandise sold 394,200 459,900 Ending inventories 45,984 50,784 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Prior Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 days b. The inventory turnover has , while the number of days' sales in inventory has . The sales volume has faster than the inventory, resulting in a inventory position.arrow_forwardEndor Company begins the year with $110,000 of goods in inventory. At year-end, the amount in inventory has increased to $121,000. Cost of goods sold for the year is $1,500,000. Compute Endor's inventory turnover and days' sales in inventory. Assume there are 365 days in the year. Inventory Turnover Choose Numerator: 1 Choose Denominator: 1 1 Choose Numerator: Days' Sales in Inventory 1 Choose Denominator: X 1 X 1 X Days 365 365 Inventory Turnover Inventory Turnover times = = = Days' Sales in Inventory Days' sales in inventory daysarrow_forward
- SCC Company reported the following for the current year: Net sales Cost of goods sold Beginning balance in inventory Ending balance in inventory $ 73,000 58,500 3,500 9,500 Compute (a) Inventory turnover and (b) days' sales in Inventory. Hint Inventory turnover uses average Inventory and days' sales in Inventory uses the ending balance in Inventory. Complete this question by entering your answers in the tabs below. Inventory Days Sales In Turnover Inventory Compute the inventory turnover. Numerator: Average inventory Cost of goods sold Ending inventory Net sales Inventory Turnover Denominator: = Inventory Turnover = Inventory turnover = timesarrow_forwardThe following data were taken from a company’s latest financial statements: Annual sales $2,433,332 Cost of goods sold 2,027,778 Inventories 500,000 Accounts receivable 600,000 Accounts payable 300,000 What is the company’s inventory conversion period? Which answers? 90 days 75 days 111 days 54 daysarrow_forwardUse the following information relating to Clover Company to calculate (a) the inventory turnover ratio, (b) gross margin, and (c) the number of days’ sales in inventory ratio, for years 2022 and 2023. Assume a year has 365 days. Do not round intermediate calculations and round your final answers to 3 decimal places. Sales Cost ofGoods Sold AverageInventory Year 2021 $250,000 $187,500 $26,000 Year 2022 295,000 221,250 30,000 Year 2023 323,000 252,250 35,000 InventoryTurnover GrossMargin Days' Salesin Inventory Year 2022 fill in the blank 1 $fill in the blank 2 fill in the blank 3 Year 2023 fill in the blank 4 $fill in the blank 5 fill in the blank 6arrow_forward
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