FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Use the following information: Net sales Cost of goods sold $235,000 168,000 52,000 42,000 Beginning inventory Ending inventory a. Calculate the inventory turnover ratio. b. Calculate the average days in inventory. c. Calculate the gross profit ratio.arrow_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_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_forward
- Inventory Analysis A company reports the following: Cost of goods sold $249,660 Average inventory 55,480 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover b. Number of days' sales in inventory daysarrow_forwardCompute trend percents for the following accounts using 2020 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favourable or unfavourable. Sales Cost of goods sold Accounts receivable Numerator: 2024 $ 754,236 372,126 36,731 Numerator: 1 2023 $ 499,494 246,502 29,121 Trend Percent for Net Sales: 1 1 1 1 1 1 2024: 2023: 2022: 2021: 2020: Is the trend percent for Net Sales favourable or unfavourable? 2022 $394,857 196,780 27,127 Prev Denominator: Trend Percent for Cost of Goods Sold: 1 Denominator: 5 of 8 2021 $ 265,005 131,752 15,529 = Next > 2020 $ 196,300 96,187 13,407 Trend percent % % % % %arrow_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
- Based on the following data for the current year, what is the number of days' sales in inventory (rounded to one decimal place)? Assume 365 days a year. Sales on account during year $404,861 Cost of goods sold during year 187,185 Accounts receivable, beginning of year 41,348 Accounts receivable, end of year 53,834 Inventory, beginning of year 33,236 Inventory, end of year 44,404 a.75.7 b.151.3 c.86.6 d.64.8arrow_forwardUsing the data below, compute lan's return on sales ratio for the month of January. Net Sales $12,000 Cost of goods sold 3,000 Operating expenses 7,000 Other income 500 Income tax expense 1,000 Round answer to the nearest whole percentage.arrow_forwardFollowing is an incomplete current-year income statement. Determine Net Sales, Cost of goods sold and Net Income. Additional information follows: Return on total assets is 16% (average total assets is $62,500). Inventory turnover is 5 (average inventory is $7,800). Accounts receivable turnover is 8 (average accounts receivable is $7,700). Income Statement Net Sales Cost of goods sold Selling, general, and administrative expenses 8800 Income tax expenses 3800 Net Incomearrow_forward
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