Using the data for 2016 and 2015, calculate the inventory turnover for each year. The beginning inventory
Question:
Using the data for 2016 and 2015, calculate the inventory turnover for each year. The beginning inventory for year 2015 was $98,000.
Austin, Ind Comparative Income Statement Years Ended December 31, 2016 and 2015 Amounts 2016 2015 Sales Less Sales Returns and Allowances Net Sales Cost of Goods Sold Gross Profit on Sales Selling Expenses General Expenses Total Expenses et Income before Income Taxes Income Tax Expense Net Income after Income Taxes 16 7 1 07515 1966 5 9 6075 8 46 6 5 15 7 50 0 0 14 3 5000 10426 5 0 532 3 5 01 2 1 5 0 0 0 2 1 0 0 0 0 4 2 5 000 11017[3 5 01 487900 2 05 0 00 19 00 0 0 9 2 9 00 2787 0 6 5 0 3 0 3 2 2 05 7 5 1 45
Step by Step Answer:
tr msoheightsourceauto col msowidthsourceauto br msodataplacementsamecell style0 msonumberformatGeneral textaligngeneral verticalalignbottom whitespacenowrap msorotate0 msobackgroundsourceauto msopatt...View the full answer
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina
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 Accounting questions
-
The income statement for Federer Sports Apparel for 2016 and 2015 is presented below. Required: Prepare a vertical analysis of the data for 2016 and 2015. FEDERER SPORTS APPAREL Income Statement For...
-
The balance sheets for Federer Sports Apparel for 2016 and 2015 are presented below Required: 1. Prepare a vertical analysis of the balance sheet data for 2016 and 2015. Express each amount as a...
-
The comparative balance sheets for Federer Sports Apparel are presented below. Required: 1. Prepare a vertical analysis of the balance sheet data for 2016 and 2015. Express each amount as a...
-
Explain how to transform sin tan + cos into sec.
-
Farris Inc. issues 8,000 shares of $100 par value preferred stock for cash at $108 per share. Journalize the issuance of the preferred stock.
-
How do you think credit spreads behave over the course of the economic cycle?
-
In 2001, the City of New York and the Dormitory Authority of the State of New York (DASNY) entered into an agreement to build a forensic biology laboratory in Manhattan. Per the agreement, DASNY...
-
Comparative financial statements for Weaver Company follow: During 2009, the company sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition,...
-
Two transverse sinusoidal waves combining in a medium are described by the wave functions V = 5.00 sin[(x + 0.300t)] Y25.00 sin[(x -0.300)] where x, y, and y are in centimeters and t is in seconds....
-
Water in a piston/cylinder (Fig. P3.174) is at 101 kPa, 25C, and mass 0.5 kg. The piston rests on some stops, and the pressure should be 1000 kPa to float the piston. We now heat the water, so the...
-
Calculate the current ratio for 2016 and 2015. Austin, Ind Comparative Income Statement Years Ended December 31, 2016 and 2015 Amounts 2016 2015 Sales Less Sales Returns and Allowances Net Sales Cost...
-
Compute the accounts receivable turnover on December 31, 2016, for Austin, Inc. Assume that all sales were credit sales. Austin, Ind Comparative Income Statement Years Ended December 31, 2016 and...
-
A parallel-plate capacitor has the space between the plates filled with two slabs of dielectric, one with constant K1 and one with constant K2 (Fig). Each slab has thickness d/2, where d is the plate...
-
The client, a large organization with a market capitalization of R8,000 million, needed assistance to build a business analysis practice to significantly improve business analysis across the...
-
Set a series of measurable and achievable business goals that align with Amazon's strategic vision. These goals should be specific and should outline what the company wants to achieve in the short...
-
What is cash that is set aside for a particular purpose or otherwise not available for immediate use?
-
Name three kinds of food retailers and five kinds of general merchandise retailers. Conventional supermarkets still sell a majority of food merchandise, but they are under substantial competitive...
-
Assignments Assignment 02 imagine a scenario in which a Bank is responsible to make sure the security of the customer data. Considering the scenario, define the following in your own words. Use...
-
Nova Gold Miners (NGM) is a gold mining company. NGM currently has two mines operating in Northwestern Ontario, and many exploration claims throughout Ontario and Quebec. The company is publicly...
-
Classify each of the following activities as proper or prohibited under the various consumer statutes you have studied. a. Calling a hospital room to talk to a debtor who is a patient there. b....
-
The following excerpt was taken from The Home Depot, Inc., 2015 Annual Report (for the fiscal year ended January 31, 2016).The Balance Sheet to the Consolidated Financial Statements contained the...
-
The following data pertains to Efficient Market Investment software packages in the inventory of the Investment Software division of Efficient Market Investment Outlets: Inventory, January 1...
-
Which of the following items are subtracted from net sales to arrive at contribution margin ? a. Fixed administrative expenses b. Variable administrative expenses c. Fixed manufacturing costs d....
-
What role does agency play in the Hypodermic Model of Communication? Long after the model has been abandoned by experts in persuasion and mass media, why does this model live on as common sense?
-
Sophia operates a large singing school with 22 employees. She receives advance fee payments from students in respect of each course (a course consists of 26 lessons). If a student does not attend all...
-
Daniel is a resident individual who carries on a retail business but does not use the SBE method of accounting for income in his business. On 30 June of the current tax year he had trade debtors of...
Study smarter with the SolutionInn App