Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Question
Chapter 10, Problem 8MCQ
To determine
Determine the number of days to sell inventory.
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Students have asked these similar questions
Assume a firm's inventory level of $11,500 represents 33 days of sales.
What is the annual cost of goods sold? and what is the inventory turnover ratio?
Assume a firm's inventory level of $11,000 represents 32 days' sales.
Required:
a. What is the annual cost of goods sold? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to
whole number.)
b. What is the inventory turnover ratio? (Round your answer to 2 decimal places.)
Annual cost of goods sold
Inventory turnover ratio
times per year
Assume that a company’s Inventory Turnover is 15. What does that mean?
It takes about 15 days for inventory to move from the company to its customers.
Receivables turn over 15 times per year.
Inventories turn over 15 times per year.
The average account receivable is collected about 15 days after the credit sale occurs.
Chapter 10 Solutions
Financial Accounting
Ch. 10 - Prob. 1YTCh. 10 - Prob. 2YTCh. 10 - Prob. 3YTCh. 10 - Prob. 4YTCh. 10 - Prob. 5YTCh. 10 - Define the items that the Financial Accounting...Ch. 10 - Prob. 2QCh. 10 - Prob. 3QCh. 10 - Prob. 4QCh. 10 - Prob. 5Q
Ch. 10 - Prob. 6QCh. 10 - What is solvency? Which ratios are useful for...Ch. 10 - What is profitability? Which ratios are useful for...Ch. 10 - What are market indicators? Which ratios are...Ch. 10 - Prob. 10QCh. 10 - Prob. 1MCQCh. 10 - Current assets for Kearney Company are 120,000 and...Ch. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQCh. 10 - Prob. 7MCQCh. 10 - Prob. 8MCQCh. 10 - Prob. 9MCQCh. 10 - Prob. 10MCQCh. 10 - Prob. 1SEACh. 10 - Prob. 2SEACh. 10 - Prob. 3SEACh. 10 - Prob. 4SEACh. 10 - Prob. 5SEACh. 10 - A five-year comparative analysis of Low Light...Ch. 10 - Prob. 7SEACh. 10 - Prob. 8SEBCh. 10 - Prob. 9SEBCh. 10 - Prob. 10SEBCh. 10 - Perform a vertical analysis on the following...Ch. 10 - Prob. 12SEBCh. 10 - Prob. 13SEBCh. 10 - Use the following information to construct a...Ch. 10 - Prob. 16EACh. 10 - Prob. 17EACh. 10 - Prob. 18EACh. 10 - Prob. 19EACh. 10 - Use the balance sheets from Suzannes Hotels in...Ch. 10 - Prob. 21EACh. 10 - Prob. 22EACh. 10 - Prob. 23EACh. 10 - Use the statements of earnings for Campbell Soup...Ch. 10 - Prob. 25EACh. 10 - Prob. 26EACh. 10 - Prob. 27EACh. 10 - Prob. 28EBCh. 10 - Prob. 29EBCh. 10 - Prob. 30EBCh. 10 - Prob. 31EBCh. 10 - Prob. 32EBCh. 10 - Prob. 33EBCh. 10 - Prob. 34EBCh. 10 - Prob. 35EBCh. 10 - Prob. 36EBCh. 10 - Prob. 37EBCh. 10 - Prob. 38EBCh. 10 - Prob. 39EBCh. 10 - Prob. 40EBCh. 10 - Prob. 41PACh. 10 - Prob. 42PACh. 10 - Prob. 43PACh. 10 - Following are the income statements for Alpha...Ch. 10 - Prob. 45PACh. 10 - Prob. 46PACh. 10 - Prob. 47PACh. 10 - You are interested in investing in Teddy Company,...Ch. 10 - Prob. 49PBCh. 10 - Prob. 50PBCh. 10 - Prob. 51PBCh. 10 - Prob. 52PBCh. 10 - Prob. 53PBCh. 10 - Prob. 54PBCh. 10 - Prob. 55PBCh. 10 - Prob. 56PBCh. 10 - Prob. 1CTPCh. 10 - Prob. 2CTP
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Similar questions
- If a firms inventory level of $10,000 represents 30 days sales, what is the annual cost od goods sold? What is the inventory turnover rate?arrow_forwardA firm has an average age of inventory of 65 days, an average collection period of 45 days, and an average payment period of 30 days. The firm's cash conversion cycle is a. 110 days b. 45 days c. 75 days d. 80 daysarrow_forward22) A firm has the following data: Inventory conversion period = 75 days Average collection period = 32 days Payables deferral period = 45 days What is the firm's cash conversion cycle? 1. 5 days. 2. 40 days. 3. 62 days. 4. 88 days. 5. 15 days.arrow_forward
- A firm has an average age of inventory of 60 days, an average collection period of 40 days, and an average payment period of 30 days. The firm's operating cycle is?arrow_forwardIn an economy, firms tend to hold 25% of output as inventory.i. If in period 1, total output is 200 units, calculate the stock of inventory inthat period.ii. If production increases by 50% in the following period, calculate inventoryinvestment over the two periods.arrow_forwardA company has international sales with 90 days term. Their Inventory turnover period is 30 days. What is the difference in percentage of profit in a year if they decrease the selling term to 60 days? The cost of goods is 10 and their selling price is 12.5arrow_forward
- Arrow Distributing Corp. likes to track inventory by using weeks of supply as well as by inventory turnover. Arrow Distributing Corp. Net Revenue Cost of sales Inventory Total assets a) What is its weeks of supply? weeks (round your response to two decimal places). b) What is Arrow's inventory turnover? times per year (round your response to two decimal places). $16,830 $14,240 $920 $9,270 c) Suppose a manufacturer has an inventory turnover of 13.5 times per year. Arrow's supply chain performance relative to the manufacturer's, as measured by inventory turnover, isarrow_forward1. The following information has been calculated for ABC Co: 52 days 42 days Trade receivables collection period Raw material inventory turnover period Work in progress inventory turnover period 30 days Trade payables payment period Finished goods inventory turnover period 45 days 66 days What is the length of the net operating cycle?arrow_forwardWhat is the ratio that measures the number of days on average the company takes to turn its inventory into sales? Days sales outstanding Days inventory outstatnding Days payable outstatnding Days order outstandingarrow_forward
- Zane Corporation has an inventory conversion period of 64 days,an average collection period of 28 days, and a payables deferral period of 41 days.a. What is the length of the cash conversion cycle?b. If Zane’s annual sales are $2,578,235 and all sales are on credit, what is the investmentin accounts receivable?c. How many times per year does Zane turn over its inventory? Assume that the cost ofgoods sold is 75% of sales. Use sales in the numerator to calculate the turnover ratio.arrow_forwardUsing 360 days in a year, what is Blue Co.’s inventory turnover in 2021?arrow_forwardA company reports the following: Cost of goods sold $4,445,700 Average inventory 255,500 Determine the (a) inventory turnover, and (b) number of days' sales in inventory. Round your answers to one decimal place. Assume a 365-day year.arrow_forward
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