This information is available for Abdullah's Photo Corporation for 2020, 2021, and 2022. Instructions a . Calculate
Question:
This information is available for Abdullah's Photo Corporation for 2020, 2021, and 2022.
Instructions
a. Calculate the inventory turnover for 2020, 2021, and 2022. (Round to one decimal place.)
b. Calculate the days in inventory for 2020, 2021, and 2022. (Round to one decimal place.)
c. Calculate the gross profit rate for 2020, 2021, and 2022. (Round to one decimal place.)
d. Comment on any trends observed in your answers to parts (a), (b), and (c).
Beginning inventory Ending inventory Cost of goods sold Net sales revenue 2020 $ 100,000 300,000 900,000 1,200,000 2021 $ 300,000 400,000 1,152,000 1,600,000 2022 $ 400,000 480,000 1,300,000 1,900,000
Step by Step Answer:
a To calculate the inventory turnover divide the cost of goods sold by the average inventory 2020 Co...View the full answer
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
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 Business questions
-
Schenk Corporations balance sheet immediately prior to its acquisition by Piaget Company is as follows: Schenk Corporation (in thousands) Book Value Fair Value Assets Current assets $3,000 $2,500...
-
This information is available for Tamarisk Photo for 2018, 2019, and 2020. 2018 2019 2020 Beginning inventory 114,000 308,000 410,000 Ending inventory 308,000 410,000 470,000 Cost of goods sold...
-
This information is available for Coronado Photo for 2018, 2019, and 2020. 2018 2019 2020 Beginning inventory 103,500 303,500 418,500 Ending inventory 303,500 418,500 479,500 Cost of goods sold...
-
1. Should Sandy do exactly what the partner suggests, or risk losing the business for the firm, and perhaps her job, by suggesting a different approach? 2. What might be an alternative approach? 3....
-
The unemployment rate during the Great Depression peaked at nearly 25 percent in 1933, after an initial spike from 3 percent in 1929 to nearly 8.7 percent in 1930. The unemployment rate is just 5...
-
Compute the z scores for the following raw scores where X = 50 and the standard deviation = 5. a. 55 b. 50 c. 60 d. 58.5 e. 46
-
Research a past California case in which you believe a removal would have changed the outcome of the case. Using your knowledge of the potential advantages of transferring a case already filed in the...
-
What is meant by the reference in Table 5.3-1 to an FAS 116 adjustment? How are contributions recorded? Is there a distinction between pledges receivable and accounts receivable? Are there...
-
YORKIS PEREZ, CONSULTHNG ENGTNEER TRIAL BALANCE DECEMBER 31, 2014 Debit Credit Cash Accounts Receivable 49,600 Allowance for Doubtful Accounts Inventory 1,960 Prepaid Insurance 1,100 Equipment 25,000...
-
The Robbins Corporation is an oil wholesaler. The firms sales last year were $1 million, with the cost of goods sold equal to $600,000. The firm paid interest of $200,000 and its cash operating...
-
Elsa's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information relating to Elsa's purchases of Xpert snowboards during September is shown below. During the same...
-
Smart Watch Company reported the following income statement data for a 2-year period. Smart uses a periodic inventory system. The inventories at January 1, 2021, and December 31, 2022, are correct....
-
A fire during 2014 destroyed most of the accounting records of Clearview Cablevision, Inc. The only accounting data for 2014 that Clearview can come up with are the following balances at December 31,...
-
a. How much work is performed when you push a couch of mass 44 kg a distance of 2.5 m using a force of 135 N? b. You perform 556 J of work lifting a box to a height of 1.3 m. How much force did you...
-
Consider a semiannual 3.5% coupon bond with a $1,000 face value that has 4 years to maturity. (a) Calculate the market price of this bond using a yield to maturity (YTM) of 3.6%. Is this bond a...
-
Case Study: Implementing Change in a Manufacturing Company Background: ABC Manufacturing is a well-established company in the automotive industry, known for producing high-quality components....
-
Two resistors having resistances of 5.0 and 9.0 are connected in parallel. A 4.0 resistor is then connected in series with the parallel combination. An ideal 6.0 V battery is then connected across...
-
Dear Dr. Jones, Our pharmaceutical company now received 47 complaints about the new pain reliever NoPain , created in your lab. Of the 47 complaints, 24 said their headache got worse, 15 said they...
-
An auditor for Canada Revenue Agency is trying to reconstruct some partially destroyed records of two taxpayers. For each case in the accompanying list, find the unknowns designated by capital...
-
2. Assume a person bends forward to lift a load "with his back" as shown in Figure P12.42a. The person's spine piv- ots mainly at the fifth lumbar vertebra, with the principal supporting force...
-
Describe the installment-sales method of accounting.
-
When is revenue recognized under the cost-recovery method?
-
When is revenue recognized under the deposit method? How does the deposit method differ from the installment sales and cost-recovery methods?
-
Solve the following systems of nonlinear equations to 3 significant figures accuracy using the tearing method: 6x+x, ln x2 + x2x3 = 6 e sin x3-5e=10 x+x+x3 = 5
-
(a) Formulate the ODE for a parachutist, falling under gravity, with velocity v(t), for a viscous drag force model given by Fd = kv(t)j, v(0) = 0. (b) Outline all the steps towards the solution v(t)....
-
The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments...
Study smarter with the SolutionInn App