a. Calculate the inventory turnover for 2020 for each company (round to two decimal places). b. Can
Question:
a. Calculate the inventory turnover for 2020 for each company (round to two decimal places).
b. Can you compare these companies? Explain.
c. Review the turnover for Fresh-Cut Flowers Inc. Does this result appear to be logical? Explain why or why not.
(millions of $) Custom Furniture Corp Furniture Retailers Fresh-cut Flowers Inc. Computer Inc. 2020 2019 2019 2019 2020 2020 2020 2019 $1,491 $1,009 $3,345 $2,270 $2,040 271 $2,685 22 $2,670 $1,770 174 Cost of goods sold. Inventory. 258 222 130 87
Step by Step Answer:
a Computer Inc Furniture Retailers FreshCut Flowers Inc Custom Furniture Co...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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 Robinson Company had a cost of goods sold of $1,000,000 in 2014 and $1,200,000 in 2015. a. Calculate the inventory turnover for each year. Comment on your findings. b. What would have been the...
-
Calculate the inventory turnover, days sales in inventory, receivables turnover, days sales in receivables, and total asset turnover ratios for 2010 and 2011 for Tyler Toys. Should any of these...
-
Calculate the inventory turnover, days' sales in inventory, receivables turnover, days' sales in receivables, and total asset turnover ratios for 2013 and 2014 for Tyler Toys. Should any of these...
-
Give examples of three exceptions to the Cardozo rule of foreseeability.
-
Prove that a set with n elements has n(n 1)/2 subsets containing exactly two elements whenever n is an integer greater than or equal to 2.
-
Now that you have learned something about the big picture at CII, you believe it is time to learn some specifics. You call Bob Bristol to report your progress and ask for the details of your next...
-
The materiality concept is a financial statement disclosure guideline used by most businesses to help determine when a particular account balance or economic event should be separately disclosed in a...
-
The following data were provided by the accounting records of NewFort Limited at year- end, 31 December 20X9: Analysis of selected accounts and transactions: a. Sold plant assets for cash; cost, $...
-
Las oportunidades de empleo dentro del campo de la facturacin mdica Instrucciones: Realiza un escrito de dos prrafos acerca del siguiente tema: Las oportunidades de empleo dentro del campo de la...
-
a) From the information below concerning an employed Kenyan on a pension scheme, calculate the gross pay, chargeable pay, tax charged and PAYE for the individual (Clearly explain and show your...
-
The 2020 four-year comparative financial statements of Digital Shelf Space Corp. follow: Required 1. Calculate the following for 2020 and 2019 and identify whether the ratios compare favourably (F)...
-
On December 31, 2020, University Security Inc. showed the following: Required Part 1: Calculate book value per common share and preferred share at December 31, 2020, assuming no dividends were...
-
Briefly describe the flow of data through a simple accounting system.
-
To maintain independence, the data administrator must hold a senior position within the organizational hierarchy of the information systems function. Briefly explain.
-
What impact might the existence of end-user computing in an organization have on the roles of the data administrator and the database administrator?
-
Briefly explain the nature of metadata. Why is it critical that a database management system have strong capabilities for defining metadata?
-
Briefly explain the nature and functions of a data repository system. What is the relationship between a data repository system and the database definition?
-
How can a centralized database definition and a data repository system enhance control over the systems development process?
-
Suppose you were to design a negative income tax system for the United States. Pick a guaranteed income level and a tax rate that seem reasonable to you. What break-even level of income is implied by...
-
In Exercises 15 through 30, find the derivative dy/dx. In some of these problems, you may need to use implicit differentiation or logarithmic differentiation. y ex + et -2x 1 + e
-
What does each type of ratio measure? (a) Liquidity ratios. (b) Solvency ratios. (c) Profitability ratios.
-
What is the difference between the current ratio and working capital?
-
Which ratios should be used to help answer each of these questions? (a) How efficient is a company in using its assets to produce sales? (b) How near to sale is the inventory on hand? (c) How many...
-
If the TFSA contributes of $ 1 0 , 1 0 0 at the end of every year are projected to generate a plan worth dollar 1 1 0 0 - 0 0 0 0 in 2 5 years what effective rate of return was assumed in the...
-
Bond market 1.Who are the main issuers and investors in New Zealand's bond market? 2.What factors contribute to the low level of liquidity in the secondary bond market? 3.What are "Green bonds" and...
-
A customer purchased merchandise from ABC Company for $4,500. They used a bank credit card to pay for the merchandise. The bank charges ABC a service fee of 2.5% for credit card sales. What does the...
Study smarter with the SolutionInn App