[The following information applies to the questions displayed below.]Mears and Company has been operating for five years as an electronics component manufacturer specializing in cellularphone components. During this period, it has experienced rapid growth in sales revenue and in inventory. Mr. Mears andhis associates have hired you as Mears's first corporate controller. You have put into place new purchasing andmanufacturing procedures that are expected to reduce inventories by approximately one-third by year-end. You havegathered the following data related to the changes:Inventory(dollars in thousands)Beginningof Year$585,700End of Year(projected)$392,310Current YearCost of goods soldP7-7 Part 1(projected)$7,018,984Required:1. Compute the inventory turnover ratio based on two different assumptions:Note: Round your answers to 1 decimal place.a. Those presented in the above table (a decrease in the balance in inventory).b. No change from the beginning-of-the-year inventory balance.

Ratio analysis:The ratio analysis is the study of the accounting ratio or the financial ratio that…

Required: 1. Compute the inventory turnover ratio based on two different assumptions: Note: Round your answers to 1 decimal place. a. Those presented in the above table (a decrease in the balance in inventory). b. No change from the beginning-of-the-year inventory balance.

Required: 1. Compute the inventory turnover ratio based on two different assumptions: Note: Round your answers to 1 decimal place. a. Those presented in the above table (a decrease in the balance in inventory). b. No change from the beginning-of-the-year inventory balance.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4TP: Malone Industries has been in business for five years and has been very successful. In the past...

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[The following information applies to the questions displayed below.] Mears and Company has been operating for five years as an electronics component manufacturer specializing in cellular phone components. During this period, it has experienced rapid growth in sales revenue and in inventory. Mr. Mears and his associates have hired you as Mears's first corporate controller. You have put into place new purchasing and manufacturing procedures that are expected to reduce inventories by approximately one-third by year-end. You have gathered the following data related to the changes: Inventory Cost of goods sold (dollars in thousands) Beginning of Year $585,700 End of Year (projected) $392,310 Current Year (projected) $7,018,984 P7-7 Part 2 2. What is the effect of the projected change in the inventory balance on cash flow from operating activities for the year? Effect of change in inventory
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You are an audit assistant within the internal audit department of Crofty, a company that manufactures household cleaning products and solutions. The company is rapidly expanding and currently employs over 2,000 staff. Turnover has increased by about 20% for the last three years, due mainly to the aggressive sales strategy employed by the sales manager. Turnover for the year ended 31 December 2020 was £100 million and profit was also high. The Crofty board of directors approved the creation of an internal audit at the beginning of 2020, to assist with the control of the company and also prepare for a possible listing on the stock exchange in 2022. The internal auditors currently report to the finance director.The CEO is keen to see the company comply with principles of good corporate governance and has requested your help with ensuring the company complies in full.Required:(a) Explain the reasons why internal auditors should or should not report their findings on internal control to…
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