Inventory Turnover

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Inventory Turnover Questions and Answers

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What does a high inventory turnover ratio indicate about the company's short-term liquidity?
Joe, the owner of Genuine Reproductions (GR), a company that manufactures reproduction furniture, is interested in measuring inventory effectiveness. Last year the cost of goods sold at GR was $2,8...
Bummel and Strand Corp has a gross profit margin of 33.7%, sales of $47,112,365, and inventory of $14,595,435. What is its inventory turnover ratio?
What is the inventory turnover ratio for 2016? Net sales 2016: $177,526 Cost of sales 2016: 148,669 Inventories, net 2016: 14,760 Net Sales 2015: $153,290 Cost of sales 2015: 126,762 Inventories,...
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have a turnover of about 13 times per year and 8% of their assets invested in inventory. Net Revenue = $27,...
Asset management ratios are used to measure how effectively a firm manages its assets. Consider the following case: Sonaiya Development Group, has a quick ratio of 2.00x, $28, 800 in cash, $16.000...
Cedar Communications reported the following figures in its annual financial statements. Compute the rate of inventory turnover and days' sales in inventory for Cedar Communications. Cost of Goods S...
An incomplete income statement and an incomplete comparative balance sheet of Deines Corporation are presented below. Additional information: 1. The accounts receivable turnover for 2017 is 10
1) Nu Company reported the following pretax data for its first year of operations. Net sales 2,970 Cost of goods available for sale 2,400 Operating expenses 740 Effective tax rate 40% Ending inven...
The Brenmar Sales Company had a gross profit margin (gross profits + sales) of 32% and sales of $9.1 million last year. 70% of the firm's sales are on credit, and the remainder are cash sales. Bren...
Asset management ratios are used to measure how effectively a firm manages its assets. Consider the following case: Fitcom Corporation has a quick ratio of 2.00x, $36,225 in cash, $20,125 in accou...
While a firm's sales and net income have been steady during the last three years, the firm has experienced a decrease in its accounts receivable and inventory turnovers and an increase in its accou...
Zane Corporation has an inventory conversion period of 48 days, an average collection period of 33 days, and a payables deferral period of 33 days. Assume 365 days in year for your calculations. 1...
A firm with sales of $500,000 has an average inventory of $200,000. The industry average for inventory turn over is four times a year. What would be the reduction in inventory if the firm were a tu...
Selected information for 2014 is: cost of goods sold, $5,400,000; average inventory, $1,800,000; net sales, $7,200,000; average receivables, $960,000; and net income, $720,000. Assuming a 360-day y...
Appliance for Less is a local appliance store. It costs this store $19.32 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to b...
The table below contains selected information from recent financial statements of The Home Depot, Inc., and Lowe's Companies, Inc., two companies in the home improvement retail industry Required: C...
The following information was available for Whispering Winds Corp. at December 31, 2017: beginning inventory $72,000; ending inventory $128,000; cost of goods sold $640,000; and sales $872,000. Wh...
The company Elon budgets with a cost of materials of NOK 60,000,000 and a reduction in inventory of NOK 5,000,000 next fiscal year. Average credit Time (period) for supplier of goods is 25 days. Th...
Drugal Brewing Co. has a quick ratio of 2.00x, $24,750 in cash, $13,750 in accounts receivable, some inventory, total current assets of $55,000, and total current liabilities of $19,250. The compan...
The cost of goods sold computations for Alpha Company and Omega Company are shown below: Beginning inventory: Alpha Co.: $47,510 Omega Co.: $73,810 Costs of goods purchased: Alpha Co.: 199,200 Ome...
Camp Manufacturing turns over its inventory 5 times each year, has an average payment period of 30 days, and has an average collection period of 60 days. The firm has annual sales of $3.3 million a...
Tefft Industires has an average inventory of $170,000, sells on term of 2/10, net 30, and its cost of sales is $540,000. What is Tefft's inventory conversion period? Show work.
A firm with sales of $500,000 has an average inventory of $200,000. The industry average for inventory turnover is four times a year. What would be the reduction in inventory if this firm were to a...
The following information was available for Kingbird, Inc. at December 31, 2017: beginning inventory $82000; ending inventory $106000; cost of goods sold $696000, and sales $848000. Kingbird days i...
In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to...
Select the correct answers: 1. A company began the year with $150,000 in inventory and ended the year with $170,000 in inventory. Cost of goods sold for the year amounted to $960,000. Assuming 36...
The following table contains data about the inventory for five items at Jones Corporation. Complete the missing items in the table(Round values to 3 decimal places)
The Heritage Amusement Park would like to construct a new ride called the Sonic Boom, which the park management feels would be very popular. The ride would cost $225,000 to construct, and it would...
Baby Cakes International Inc Balance Sheet December 31, 2008 and 2007 ASSETS December 31, 2008December 31, 2007 Current Assets Cash$165,000$126,000 Securities398,000254,000 A/R199,000165,000 Invent...
The following information was available for Swifty Corporation at December 31, 2017: beginning inventory $83000 ending inventory $112000 cost of goods sold $656000 sales $840000. Swifty days in inv...
The following information was available for Ayayai Corp. at December 31, 2017: What was Ayayai's inventory turnover ratio (rounded) in 2017?
Refer to the following selected financial information from Graceworks Corp. Compute the company's inventory turnover for Year 2. Year 2 Year 1 Merchandise inventory 271,000 253,500 Cost of goods s...
The following information was available for Concord Corporation at December 31, 2017: Beginning inventory $79,000; ending inventory $148,000; cost of goods sold $676,000; and sales $984,000. Concor...
The following information was available for Skysong, Inc. at December 31, 2017: Beginning inventory $92,000; ending inventory $110,000; cost of goods sold $688,000; and sales $888,000. What was Sky...
1. A work cell includes two-54-inch-square pallets for raw casting and finished castings, an operator's work area used to insert bushings into the machined casting that is 30 inches by 48 inches, a...
During a recent year, a company had an average inventory balance of $100,000; its sales were $500,000; and its cost of goods sold was $400,000. Using a 360-day year, the days' sales in inventory fo...
At December 31, 2019, the following information was available for Marigold Corp.: ending inventory $35,500, beginning inventory $64,000, cost of goods sold $262,000, and sales revenue $377,000. Cal...
Selected financial statement data for Schmitzer Inc. is shown below: 2016 2015 Balance sheet: Inventories 60,000 48,000 Ratios: Gross profit ratio for 2016 40% Inventory turnover ratio for 20...
Refer to the following selected financial information from Graceworks, Corp. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) Merchandise Investment: Year 1 $270,00...
Perfection Company had cost of goods sold of $853,000, ending inventory of $70,500, and average inventory of $71,600. What is its inventory turnover?
The following information was available for Metlock, Inc. at December 31, 2017: beginning inventory $79,000; ending inventory $134,000; cost of goods sold $608,000; and sales $888,000. Metlock days...
Blanchard, Inc. provided the following for 2017: Cost of Goods Sold (Cost of sales) $1,200,000 Beginning Merchandise Inventory 325,000 Ending Merchandise Inventory 625,000 Calculate the compa...
A company reports the following: Cost of goods sold $388,725 Average inventory 51,830 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Assume 365 days a year.
Goods available for sale total $25,000, beginning inventory is $8,000, ending inventory is $12,000, and the cost of goods sold is $10,000. How many days is the days-sales-in-inventory?
Selected information for 2018 is: cost of goods sold, $6,000,000 average inventory, $2,000,000 net sales, $8,000,000 average receivables, $980,000 net income, $700,000. Assuming a 360-day year, wha...
During 2017, Crimson Inc. purchased $2,775,000 of inventory. The cost of goods sold for 2017 was $2,635,938 and the ending inventory at December 31, 2017 was $544,688. What was the inventory turnov...
Maybell Inc., has the following items for the month of July: Sales revenue = $476,300 Cost of goods sold = $310,000 Beginning Inventory = $67,400 Ending inventory = $78,200 What is the invento...
Calculate inventory ratios using the following information: Net sales $195,000, Cost of goods sold 136,000, Beginning inventory 44,000, Ending inventory 34,000.
Blanchard provided the following for 2017: Cost of goods sold = $1,200,000 Beginning Merchandise Inventory = $325,000 Ending Merchandise Inventory = $625,000 Calculate the company's inventory tu...
Use the following info for the share company to compute inventory turnover for year 2. Net sales- year two: $657,000 year one: $584,800 Cost of goods sold- year 2: 390,400 year one: 361,030 ending...
A firm reported year-end cost of goods sold of $10 million. It listed $2 million of inventory on its balance sheet. Using a 365-day year, how many days did the firm's inventory stay on the premises?
Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 12.0. What was the company's Days Outstanding in Inventory. Assume a 365 day year.
A company had an average inventory last year of $196,000 and its inventory turnover was 5. If sales volume and unit cost remain the same this year as least year and inventory turnover is 8 this yea...
What does company turnover mean?
Tater and will reported sales for 2018 of $43 million. Tater and will listed $7.6 million of inventory on its balance sheet. How many days did Tater and will inventory stay on the premise?
Fry Corporation's computation of cost of goods sold is: Beginning inventory $60,000 Add: Cost of goods purchased 530,000 Cost of goods available for sale 590,000 Less: Ending inventory 90,000 Cost...
If sales is $1,000,000, cost of merchandise sold is $750,000, and average inventory is $220,000, how much would be the inventory turnover? a) 1.3 b) 3.4 c) 4.5 d) 1.1
High inventory turnover will result in a high average days inventory on hand. True False
Use the following information regarding Black Company and Red Company to answer the question "Which of the following is Red Company's "cost of goods sold" for 2014 (to the closest dollar)?" Year I...
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