The following data were extracted from the income statement of Brecca Systems Inc.: a. Determine for each
Question:
The following data were extracted from the income statement of Brecca Systems Inc.:
a. Determine for each year (1) the inventory turnover and (2) the number of days?? sales in inventory. Round to nearest dollar and one decimal place.b. What conclusions can be drawn from these data concerning theinventories?
Current Year Preceding Year $1,192,320 Sales $1,139,600 80,000 Beginning inventories Cost of goods sold Ending inventories 64,000 662,400 80,000 569,800 74,000
Step by Step Answer:
a b The inventory position of the business has deteriorated The ...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 Managerial Accounting questions
-
The following data were extracted from the income statement of Mountain Sports Inc.: a. Determine for each year (1) The inventory turnover (2) The number of days sales in inventory. Round to nearest...
-
The following data were extracted from the income statement of Keever Inc.: a. Determine for each year (1) The inventory turnover and (2) The number of days sales in inventory. Round to the nearest...
-
The following data were extracted from the income statement of Hestia Systems Inc.: a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round to the...
-
On July 1, 2021, Katrina purchased tax-exempt bonds (face value of $75,000) for $82,000. The bonds mature in five years, and the annual interest rate is 3%. a. How much interest income and/or...
-
What are the five major industry forces? How do they shape average profitability in an industry?
-
The drinking water needs of an office are met by large water bottles. One end of a 0.35-in-diameter, 6-ft-long plastic hose is inserted into the bottle placed on a high stand, while the other end...
-
A blood bank catalogs the types of blood, including whether it is Rh-positive or Rh-negative, given by donors during the last five days. The number of donors who gave each blood type is shown in the...
-
Kosco CD Company has had 4 years of record earnings. Due to this success, the market price of its 400,000 shares of $2 par value common stock has increased from $6 per share to $50. During this...
-
Question 1. From the research for this terms Crisis Management Team Assignment - Taylor swift and Ticket Master Crisis a. Explaining, with some detail, three (3) specific things that the leader(s) in...
-
a. Create a class named Lease with fields that hold an apartment tenants name, apartment number, monthly rent amount, and term of the lease in months. Include a constructor that initializes the name...
-
Xavier Stores Company and Lestrade Stores, Inc., are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the...
-
Dell Inc. and Hewlett-Packard Company (HP) compete with each other in the personal computer market. Dell??s primary strategy is to assemble computers to customer orders, rather than for inventory....
-
Choose a publicly traded company and go to its 2020 annual report to find out which method it uses to calculate inventory.
-
1. what is privet international law? 2. what is public international law? 3. How do you enforce private international law? 4. what are some of the issues faced when enforcing public international...
-
Assess the role of international law in addressing (preventing and responding to) the Covid-19 pandemic. You may choose to limit your answer to one main body of international law. In your essay, make...
-
1. Definition and features of international law rules. 2. Peculiarities and internal structure of international law rules. 3. Types of international law rules and their classification. 4. Hierarchy...
-
What do you understand by deferrals and accruals in adjusting entries? Give numerical examples on how such adjusting entries are made? Just give me numerical examples.
-
1. Distinguish between 'public' and 'private' international law. 2. Object and purposes of international law. 3. Will of states as ground of legitimacy of international law. 4. Normative theory and...
-
Lett Incorporateds stock price is now $50, but it is expected either to rise by a factor of 1.5 or to fall by a factor of 0.7 by the end of the year. There is a call option on Letts stock with a...
-
A liquid flows upward through a valve situated in a vertical pipe. Calculate the differential pressure (kPa) between points A and B. The mean velocity of the flow is 4.1 m/s. The specific gravity of...
-
State whether each of the following is a physical or a chemical change. (a) Steam condenses and freezes tos ice. (b) Hydrogen and oxygen gases explode. (c) Bromine vaporizes to a brown gas. (d)...
-
Data are presented in the following table of rates of return on investment and residual incomes: Determine the missing items, identifying each item by the appropriateletter. Minimum Rate of Return on...
-
Data for the California, Midwest, Northwest, and Texas divisions of Firefly Industries are as follows: a. Determine the missing items, identifying each by the letters (a) through (l). Round profit...
-
Marriott International, Inc., provides lodging services around the world. The company is organized into the following five segments: North AmericanFull Service: Marriott and Renaissance Hotels. ...
-
Large-scale industrial production - accompanied by massive technological change, expanding international communication networks, and pro-growth government policies-generated rapid economic...
-
How can this relate to individuals who have had a TBI and are currently homeless or marginally housed?
-
1. According to Marxian theory, are crises an economic process inherent to the accumulation dynamics of current capitalism? Justify your answer. 2. According to Marxian theory, what do you consider...
Study smarter with the SolutionInn App