Guthrie Corp. has current liabilities of $270,000, a quick ratio of 1.1, inventory turnover of 4.2, and
Question:
Guthrie Corp. has current liabilities of $270,000, a quick ratio of 1.1, inventory turnover of 4.2, and a current ratio of 2.3. What is the cost of goods sold for the company?
Step by Step Answer:
Input area Current liabilities 27000...View the full answer
Corporate Finance
ISBN: 978-0077337629
9th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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 Corporate Finance questions
-
Cost of Goods Sold Holliman Corp. has current liabilities of $410,000, a quick ratio of 1.8, inventory turnover of 4.2, and a current ratio of 3.3. What is the cost of goods sold for the company?
-
Saunders Corp. has current liabilities of $435,000, a quick ratio of .95, inventory turnover of 6.2, and a current ratio of 1.6. What is the cost of goods sold for the company?
-
Sexton Corp. has current liabilities of $325,000, a quick ratio of 0.85, inventory turnover of 9.5, and a current ratio of 1.25. What is the cost of goods sold for the company?
-
A total weighted score of in an External Factor Evaluation (EFE) Matrix indicates that an organization is responding in an outstanding way to existing opportunities and threats in its industry. Oa....
-
Discuss why many information technology professionals may overlook project cost management and how this might affect completing projects within budget.
-
Consider the network shown below, and assume that each node initially knows the costs to each of its neighbors. Consider the distance-vector algorithm and show the distance table entries at node z. 1...
-
The efficiency of self-locking machine is less than 50%. True or False
-
Rachels Designs has 2,000 shares of 7%, $50 par value cumulative preferred stock issued at the beginning of 2013. All remaining shares are common stock. Due to cash flow difficulties, the company was...
-
2- You own a shoe store and are deciding which shoes to stock for the upcoming season. You can either stock designer shoes, midrange shoes, or inexpensive shoes. If you stock designer shoes, you can...
-
Jack Tasker opened his Auto Repair Shop in November 2023. The balance sheet at November 30, 2023, prepared by an inexperienced part-time bookkeeper, is shown below. Required Prepare a correct balance...
-
If Roten, Inc,. Has an equity multiplier of 1.35, total aset turn over of 2.15, and a profit margin of 5.8 percent, what is its ROE?
-
Thomsen Company has a debt-equity ratio of, 90. Return on assets is 10.1 percent, and total equity is $645,000. What is the equity multiplier? Return on equity? Net income?
-
In recent years, several U.S. firms have penetrated Mexicos market. One of the biggest challenges is the cost of capital to finance businesses in Mexico. Mexican interest rates tend to be much higher...
-
How does Conflict Theory elucidate the role of power dynamics in perpetuating social inequalities across different societal domains? How does Conflict Theory elucidate the role of power dynamics in...
-
n what ways does Conflict Theory contribute to our understanding of social change, particularly in explaining the conditions under which systemic transformations occur and the obstacles they face?
-
Can you discuss how Conflict Theory applies to the phenomenon of globalization and its impact on global power dynamics and socioeconomic disparities?
-
How do emerging technologies and digital spaces influence constructions of gender identity and expression, and what are the implications for privacy, surveillance, and online harassment within these...
-
How do discourses surrounding reproductive rights and bodily autonomy intersect with broader debates about gender justice, particularly in the context of marginalized communities facing systemic...
-
In general for an arbitrary thermodynamic property of a pure substance, M = M(T,P); whence For what two distinct conditions is the following equation true? M dT + T we, dM = dP dP T
-
What are the key elements of a system investigation report?
-
Suppose a companys operating cash flow has been negative for several ye running. Is this necessarily a good sign or a bad sign?
-
Could a companys cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?
-
Could a companys cash flow to stockholders be negative in a given year? Explain how this might come about. What about cash flow to creditors?
-
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold during the quarter...
-
Provide documentation of a step by step training plan for a beta fish. What will be the primary reinforcer? How will you cue the behavior? What schedule of reminforcement will you use. What is the...
-
On May 1, Soriano Company reported the following account balances along with their estimated fair values: Items Carrying Amount Fair Value Receivables Inventory Copyrights Patented technology Total...
Study smarter with the SolutionInn App