Kingbird Merchants reported the following on its income statement for the fiscal year ended December 31,...
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Kingbird Merchants reported the following on its income statement for the fiscal year ended December 31, 2021 and 2020. 2020 $474,790 Sales Cost of goods sold Beginning inventory Net purchases Ending inventory Cost of goods sold Gross profit Operating expenses Profit Inventory turnover 2021 $495,060 145,680 345,590 (138,574) 352,696 Days sales in inventory 142,364 87,568 $54,796 154,124 322,260 (145,680) 330,704 Calculate the inventory turnover ratio for Kingbird for 2021 and 2020. (Round answers to 2 decimal places, e.g. 52.75.) 2021 144,086 89,168 $54,918 times 2020 Calculate the days sales in inventory for Kingbird for 2021 and 2020. (Round answers to 0 decimal places, e.g. 5,275 and use 365 days for calculation.) 2021 days times 2020 days Calculate the gross profit margin for Kingbird for 2021 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.) 2021 Gross profit margin Profit margin 196 % Calculate the profit margin for Kingbird for 2021 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.) 2021 2020 2020 96 %6 For each ratio calculated in (a), (b), (c) and (d) above, identify if the ratio has improved or deteriorated from 2020 to 2021. Inventory turnover Days sales in inventory Gross profit margin Profit margin Kingbird Merchants reported the following on its income statement for the fiscal year ended December 31, 2021 and 2020. 2020 $474,790 Sales Cost of goods sold Beginning inventory Net purchases Ending inventory Cost of goods sold Gross profit Operating expenses Profit Inventory turnover 2021 $495,060 145,680 345,590 (138,574) 352,696 Days sales in inventory 142,364 87,568 $54,796 154,124 322,260 (145,680) 330,704 Calculate the inventory turnover ratio for Kingbird for 2021 and 2020. (Round answers to 2 decimal places, e.g. 52.75.) 2021 144,086 89,168 $54,918 times 2020 Calculate the days sales in inventory for Kingbird for 2021 and 2020. (Round answers to 0 decimal places, e.g. 5,275 and use 365 days for calculation.) 2021 days times 2020 days Calculate the gross profit margin for Kingbird for 2021 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.) 2021 Gross profit margin Profit margin 196 % Calculate the profit margin for Kingbird for 2021 and 2020. (Round answers to 1 decimal place, e.g. 52.7%.) 2021 2020 2020 96 %6 For each ratio calculated in (a), (b), (c) and (d) above, identify if the ratio has improved or deteriorated from 2020 to 2021. Inventory turnover Days sales in inventory Gross profit margin Profit margin
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solution Inventory turnover For 2021 352696 145680 1385 248 ti... View the full answer
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
Posted Date:
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