The following information was available for the year ended December 31, 2022: Required: a. Calculate the inventory
Question:
The following information was available for the year ended December 31, 2022:
Required:
a. Calculate the inventory turnover for 2022.
b. Calculate the number of days’ sales in inventory for 2022, using year-end inventories.
Cost of goods sold . . . . . . . . Average inventory for the year Inventory at year-end . . $350,400 109,500 105,600
Step by Step Answer:
a Inventory turnover Cost of goods sold average inventories 350400 ...View the full answer
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
-
The following information was available for the year ended December 31, 2022: Required: a. Calculate margin, turnover, and ROI for the year ended December 31, 2022. b. Calculate ROE for the year...
-
The following information was available for the year ended December 31, 2016: Sales $ 380,000 Net income 55,020 Average total assets 680,000 Average total stockholders' equity 345,000 Dividends per...
-
The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating income)...................... $120,000 Interest...
-
1. What is your brand/product? 2. Who is your target segment? 3. What are their needs/wants? 4. What message do you want to deliver to them?
-
Does the percentage- of- sales approach for estimating the allowance for uncollectible accounts provide a more accurate measurement of accounts receivable than it does in reporting bad debt expense...
-
Designing a Balanced Scorecard strategy map for an auto parts manufacturing company Domestic Auto Parts (DAP), 16 a $1 billion subsidiary of a U.S. auto parts manufacturing company, manufactured and...
-
Maxfli Hot Air Balloons, Inc., completed the following selected transac- tions during 2009: Requirement Record the transactions in the general journal. Feb. 9 Declared a cash dividend on the 10,000...
-
(Conceptual FrameworkGeneral) The Financial Accounting Standards Board (FASB) has developed a conceptual framework for financial accounting and reporting. The FASB has issued seven Statements of...
-
Mth 234 I < > Upcoming Eve... K Candidate Prof... mylab.pearson.com State Farm Tal... I Job Board - Re... G the average m... I Grades for Sofi... I MATH 234 All... Do Homework... G The average m......
-
Indicate whether the following generalizations suggest a positive or negative relationship. Also speculate about whether or not these generalizations reflect simple cause- effect relationships. (a)...
-
Assume that a companys current ratio is 3.0, working capital is $300,000, and the acidtest ratio is 1.2. a. How much does the company have in current assets? b. If the only current assets shown on...
-
The following amounts were reported on the December 31, 2022, balance sheet: Required: a. Calculate working capital at December 31, 2022. b. Calculate the current ratio at December 31, 2022. c....
-
Verify that if k is a constant, then the function y(x) kx satisfies the differential equation xy' = y for all x. Construct a slope field and several of these straight line solution curves. Then...
-
Consider the energy we use everyday in routine tasks, where that energy comes from, and where it goes. When you walk up a hill you overcome the force of gravity to raise yourself higher against the...
-
James Company is paid $6,000 in dividends from Mark Corp. on its equity investment. James lacks significant influence over Mark Corp. James Company should debit investment in trading securities debit...
-
Discussed service quality management and the link between service quality and financial success. Which company was used as an example?
-
Find the complex root ( - 2 + - 4 ???? )
-
The Natural Museum has been celebrating the life of Thomas Young. They develop a Young's experiment display. The museum has purchased a blue laser which emits light with a wavelength of 473nm. They...
-
Write out a P A = LU factorization for each of the matrices in Exercise 1.8.7. (a) (b) (c) (d) (e) (f) (0 -1 2 5) (g) (h) (i) 31 3) 2 120 011 221 3125 0411 2- 0 12 3-1 122 024 012
-
Extend Algorithms 3.4 and 3.5 to include as output the first and second derivatives of the spline at the nodes.
-
Refer to Mini-Exercise 5.1. Mini-Exercise 5.1 The balance in Happ, Inc.'s general ledger Cash account was $24,860 at September 30, before reconciliation. The September 30 balance shown in the bank...
-
Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance...
-
Prepare an answer sheet with the column headings shown here. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on the appropriate balance...
-
Golden Gate Mining Co. (GGMC) currently has a gold mine operating in Canada and is looking to purchase another gold mine in Peru, operating as Inca Gold Inc. (ICI). You currently work for the CFO at...
-
Cokolo Inc. has entered into the following two derivatives contracts: Purchased put options on 1,000 Trenton Co. shares that have an exercise price of $52 per share and expire in 60 days Negotiated a...
-
As a financial manager (consultant), undertake an investigation on your allocated company to evaluate its strategic financial position. Prepare a business report for the board of directors of the...
Study smarter with the SolutionInn App