The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation. Introduction: Inventory turnover: It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Question

Want to see the full answer?

Answer 1

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Alex is currently considering to invest his money in one of the companies betweenCompany A and Company B. The summarized final accounts of the companies for theirlast completed financial year are as follows: (refer to the images) Required:a. Calculate the following ratios for Company A and Company B. State clearly theformulae used for each ratio:i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)v. Payables Payment Period (days)vi. Current Ratiovii. Quick Ratiob. Comment on each of the ratios calculated in part (a) above.

An analyst wants to compare one firm's level of inventory last year to a competitor firm's level of inventory last year. Which one of the following financial statements provided for both firms would best help achieve this objective? Common size income statement Pro forma balance sheet Common size balance sheet Pro forma income statement

Accountants at UltraTech obtain their values for inventory and total assets, calculate the balance sheet percentage by dividing inventory by total assets for each year and summarize the observations for the relative size of inventory to total assets for each year and percentage change from year-to-year. This would allow them to effectively assess: a. Inventory control compared to competitorsb. If there is an effective return on assetsc. If inventory is being properly managedd. How they are managing liabilities

Answer 2

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 6

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 7

Chapter 3, Problem 20P

a.

Summary Introduction

To calculate: The inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 8

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 9

b.

Summary Introduction

To calculate: The inventory turnover on the basis of the alternative calculations used by the financial analysts for each year of Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 10

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 11

c.

Summary Introduction

To determine: The conclusion based on the computations of parts (a) and (b) for Perez Corporation.

Introduction:

Inventory turnover:

It is a ratio that shows the number of times a company sold or replaced its inventory during a particular time period and enables comparison between the sales levels of the company.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 3 - If we divide users of ratios into short-term...Ch. 3 - Explain how the Du Pont system of analysis breaks...Ch. 3 - If the accounts receivable turnover ratio is...Ch. 3 - Prob. 4DQ Ch. 3 - Is there any validity in rule-of-thumb ratios for...Ch. 3 - Why is trend analysis helpful in analyzing ratios?...Ch. 3 - Inflation can have significant effects on income...Ch. 3 - What effect will disinflation following a highly...Ch. 3 - Why might disinflation prove favorable to...Ch. 3 - Comparisons of income can be very difficult for...

Solution Summary: The author calculates the inventory turnover based on ratio turnover and sales/inventory for each year for Perez Corporation.

Concept explainers

Videos

Want to see the full answer?

Chapter 3 Solutions