The following data are from the income statements of Haskin Company.    Year  2017 2016 Sales revenue  $6,420,000 $6,420,000 Beginning inventory 940,000 860,000 Purchases  4,340,000 4,661,000 Ending inventory 1,020,000 940,000 Answer the following questions: Compute for each year (1) the inventory turnover and (2) the days in inventory? What conclusions concerning the management of the inventory can be drawn  from these data?

Q: Use the following information relating to Clover Company to calculate (a) the inventory turnover…

A: The ratio is calculated to determine the relationship between 2 numbers. In accounting, Ratios are…

Q: Presented below is information related to Nash Company. Date   Ending Inventory (End-of-Year…

A: Under dollar value LIFO method, the goods are taken collectively into the form of pools and then…

Q: Compute the Days-in-Inventory for the Year End Dec-31-2016, given the Following; Cost of Goods Sold…

A: Days in Inventory is a financial ratio that measures the average number of days it takes for a…

Q: Yellow Bell Company started operations on March 2016. The following information were provided in…

A: The prior period error is the error that is related to previous year and it find in current year.…

Q: Gordon Company started operations on January 1, 2015, and has used the FIFO method of inventory…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Sunland Enterprises reported the following information for 2014: Beginning inventory   $30,080…

A: Solution:- 1)calculation of the gross profit margin as follows under:- Gross profit =Net sales-Cost…

Q: Sandhill, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3…

A: Last-in-First-Out: In Last-in-first-out method, the costs of last purchase items are considered as…

Q: The following data were taken from the financial records of Mydorf Company. Net Sales Beginning…

A: Introduction: Written records that describe or attest to company transactions are known as financial…

Q: Miranda Company reported the following amounts on its 2017 income statement: Purchases, P100,000;…

A: Cost of goods sold is actual cost of goods that are being sold to the customers. It includes…

Q: Sheffield’s days in inventory in 2018 was

A: Information provided: Beginning inventory= $106,000 Ending inventory= $94,000 Cost of goods sold=…

Q: Using the numbers provided below, calculate the Inventory Turnover Ratio. The inventory turnover…

A: Lets understand the basics.Inventory turnover ratio indicates that how many time inventory gets…

Q: The following inventory valuation errors have been discovered for Knox Corporation: The 2015…

A: Inventory errors: It refers to the errors that result in overstatement or understatement of ending…

Q: Carla Vista Enterprises reported the following information for 2014: Beginning inventory   $ 37,760…

A: The question is based on the concept of Accounting Ratios.

Q: ompany period TOllows: Net income (loss) P 412,500 935,000 1,773,750 ( 275,000) 687,500 Year 2017…

A: Inventory means the stock of goods in hand . Goods means is the thing in which the business deals…

Q: Over a four-year period, Jackie Corporation reported the following series of gross profits.…

A: Gross profit: It can be defined as the difference between the cost of goods sold and the net sales…

Q: What is the comparison (analysis) of the Inventory Turnover Ratio of Industry Average Ratio and the…

A: Inventory turnover ratio defines the time period in which in which inventory is converted into…

Q: The following information came from the income statement of the Cheyenne Company at December 31,…

A: Inventory includes all the items, merchandise, and raw materials that are used by the business…

Q: Inventory Analysis A company reports the following: Cost of goods sold $256,230 Average inventory…

A: The inventory turnover ratio tells about the efficiency of the company to convert its inventory into…

Q: Problem 7. Consider the following data about Rock N' Roses Corp: Current ratio, 0.50; Quick ratio,…

A: We have assumed that prepaid expenses are not there . Current ratio = Current AssetsCurrent…

Q: In its 2019 annual report, Marin, Inc. reported inventory of $ 670 million on January 31, 2020, and…

A: Average inventory = (Beginning inventory + ending inventory)/2 = (670+546)/2 = $608 million

Q: What is the inventory turnover ratio for Fair Isle Inc. for 2020 if the inventory at the beginning…

A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…

Q: Marigold Company has used the dollar-value LIFO method for inventory cost determination for many…

A: Determine the amount of change in base price.

Q: Flounder Inc. reported the following partial statement of income data for the years ended December…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…

Q: The following data were extracted from the income statement of Keever Inc.: Current Year Sales…

A: Inventory turnover is the measure which is used to check the efficiency of the company in selling…

Q: nventory Analysis The following data were extracted from the income statement of Keever Inc.:…

A: Inventory Turnover = Cost of Goods SoldAverage Inventory   Number of days' sales in Inventory =…

Q: The following information is available for Everett Company at December 31, 2015: beginning inventory…

A: We have the following information: Beginning Inventory: $80,000 Ending Inventory: $120,000 Cost of…

Q: In its 2018 annual report, Gap Inc. reported inventory of $1,997 million on January 31, 2018, and…

A: Solution: Inventory turnover is also known as activity ratio which is used to calculate the…

Q: ABC Company was formed on January 1, 2020. The entity reported the following financial statements…

A: The Income Statement and Statement of Financial position is given for the year ended 31st December…

Q: Sandhill Inc. reported inventory at the beginning of the current year of $440000 and at the end of…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory  = (Beginning…

Q: Using the information​ provided, what is the inventory turnover for the​ firm?   Allied​ Industries,…

A: To calculate the inventory turnover for the firm, you need to divide the cost of goods sold (COGS)…

Q: The following information is available for cullumber company for three recent fiscal years.…

A: Solution:- Calculation of Inventory turnover ratio as follows under:-

Q: Presented below is information related to Crane Company. Date   Ending Inventory (End-of-Year…

A: Date Ending Inventory(End-of-Year Prices) PriceIndex Inventory at base year price Change from the…

Q: The following data were extracted from the accounting records of Harkins Company for the year ended…

A: a.Calculate the cost of goods sold of Company H.

Q: The Northern Company installed a new inventory management system at the beginning of 2018. Shown…

A: Inventory turnover ratio measures the number of times a company has sold its inventory. The ratio…

Q: The following information is available for Marin Inc. for three recent fiscal years. Inventory Net…

A: Inventory turnover = Cost of goods sold/Average inventory Days in inventory = 365/Inventory turnover…

Q: Calculate the days of inventory ratio for Urban Outfitters for both 2018 and 2019. Be sure to round…

A: From the given data, we need the following to calculate the days of inventory ratio:Merchandise…

Q: In its 2015 annual report, Gap Inc. reported inventory of $1,889 million on January 31, 2015, and…

A: Workings: Inventor turnover = Cost of Goods sold / Average inventory.

Q: The following data relates to the business of Hunter for the year ended 31 December 2009. Inventory…

A: Cost of sales or cost of goods sold means the cost of goods which has been sold out including direct…

Q: Inventory Analysis The following data were extracted from the income statement of Shriver Inc.:…

A: The objective of the question is to calculate the inventory turnover and the number of days' sales…

Q: The financial statements of Crane, Inc's. 2025 annual report disclose the following information: (in…

A: The ratio analysis helps to analyse the financial statements of the business on the basis of the…

Q: PAKIALAMERA KO Company provided the following data for the current year: Inventory, January 1…

A: The cost of goods sold can be calculated by adding up net purchases and deducting ending inventory…

Q: Based on the following information compute (a) inventory turnover, (b) average daily cost of…

A: Inventory turnover ratio refers to number of times inventory is sold or used in a given period.

Q: Calculate the inventory turnover for 2020, 2021, and 2022. (Rou

A: Inventory turnover ratio is a financial ratio.It shows how many times the inventory is sold.It is…

Q: The following data were taken from the income statements of MetronixCorporation. Compute the…

A: Calculation of inventory turn-over ratios for each year: Excel workings:

Q: The following information is available for Bridgeport Corporation for 2022: Beginning inventory…

A: Formula is as follows Inventory turnover =  cost of goods sold / average inventory Average inventory…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.