a. Calculate the merchandise inventory turnover for 2014 for each company (round to two decimal places). b.
Question:
b. Can you compare these companies? Explain.
c. Review the turnover for Freshcut Flowers Inc. Does this result appear to be logical? Explain why or whynot.
(millions of $) Computer Inc. Furniture Retallers Freshcut Flowers Inc. Furniture Unlimited 2014 2013 2014 2013 2014 2013 2014 2013 Cost of goods sold Merchandise inventory $1,350 960 $2,940 51,920 $2,160 $2,430 $2,190 $1,740 150 120 105 60 15 45 120
Step by Step Answer:
a Computer Inc Furniture Retailers Freshcut Flowers Inc Furniture Unlimited ...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Accounting questions
-
The following table represents admission data of two programs for the given years: 2009/10 2010/11 2011/12 99 136 112 307 309 297 Computer Systems Technician Computer Systems Technology a) What...
-
Suppose that 75% of the workers have indexed labour contracts. The Phillips curve is given by = + 0.10- 2u. Expected inflation is given by n = (1-0) + 0-1 where is assumed to be one. Suppose that...
-
Liquidity Ratios Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company,...
-
Ratio Computation and Analysis; Liquidity) as loan analyst for Madison Bank, you have been presented the following information. Each of these companies has requested a loan of $50,000 for 6 months...
-
Suppose y = 2x + 1, where and are functions of . (a) If dx/dt = 3, find dy/dt when x = 4. (b) If dy/dt = 5, find dx/dt when x = 12.
-
Presented below are selected transactions for Infinity Company during February and March of the current year. Infinity uses a perpetual inventory system and the contract-based approach for revenue...
-
What is the most important feature of a driving point FRF?
-
The events that follow pertain to a partnership formed by Mercian Zadoney and Michael Slater to operate a floor-cleaning company. 2013 Feb. 14 The partnership was formed. Zadoney transferred to the...
-
Calculate the 2 year Holding Period Return for a stock that has a price today of $120, an expected price in 2 years of $170 and pays a dividend each year of $10. Please show your calculations in the...
-
Marino Company had the following balance sheet on January 1, 2019: On January 2, 2019, Paul Company purchased Marino by acquiring all its outstanding shares for $300,000 cash. On that date, the fair...
-
Westend Windows constructs and installs windows for new and old homes. The sales staff are having a meeting and reviewing the following information to determine how to help reduce days sales...
-
Calculate the days sales in inventory for Furniture Retailers and Furniture Unlimited for 2014 (round to two decimal places). Which company has the more favourable ratio? Explainwhy. (millions of $)...
-
A cycloid is a curve traced out by a point p on the rim of a wheel as it rolls along the ground. Usingthe coordinate system shown in Figure 8.27, show that the curve has the parametric representation...
-
Explain the difference between the = symbol in Java and in mathematics.
-
Eltoria is the alter ego of Simone Partner and, as an influencer, Simone is not an IT girl or someone who has a famous dad. She had a very different starting point and is a law graduate from the...
-
Write methods: that show the letters H, E, L, O in the graphics window, where the point p is the top-left corner of the letter. Then call the methods to draw the words HELLO and HOLE on the graphics...
-
Write a program that displays the Olympic rings. Color the rings in the Olympic colors. Provide classes OlympicRing, OlympicRingViewer, and OlympicRingComponent. 80
-
Write a program that reads in a set of coin descriptions from a file. The input file has the format: coinNamel coinValuel coinName2 coinValue2 Add a method void read (Scanner in) throws FileNot...
-
Jay Cohen and Matthew Dilick formed several partnerships to commercialized tracts of land Cohen owned. The land was transferred to the partnership so it could be developed and generate income. Cohen...
-
A new car sold for $31,000. If the vehicle loses 15% of its value each year, how much will it be worth after 10 years?
-
Download data from FRED on inflation expectations from the University of Michigan survey of consumers. In Excel, plot the change in the expected inflation rate from 12 months earlier. In which...
-
The following information was taken from the 2008 statement of Shareholders' equity of The Home Depot (dollars in millions) (a) What portion of net income was paid out in dividends during the year?...
-
When Tandy (RadioShack) Corporation announced a 2:1 stock split, the company had 97 million shares outstanding, trading at $100 per share. (a) Estimates the number of share outstanding and market...
-
The following information was taken from the 2009 annual report of Coca-Cola (dollar and share amounts in millions) (a) At what average price did the company repurchased its shares in 2007? (b) At...
-
Explain organizational change and briefly discuss the three types of change? ( 350 words please)
-
Identify an organization that has experienced change Classify the type of organizational change the organization experienced Describe how the organization overcame the resistance to the change...
-
Carlton Bank has an increase in reserves of $1,000,000. If the reserve ratio is 10%, by what amount may Carlton increase its demand deposits?
Study smarter with the SolutionInn App