LanWan Software, Inc., earned sales revenue of $65,000,000 in 2012. Cost of goods sold was $39,000,000, and
Question:
Requirement
1. Compute the company’s gross profit percentage and rate of inventory turnover for 2012.
Step by Step Answer:
Req 1 Dollar amounts in millions 2012 G...View the full answer
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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
-
Sales for 2017 were $245,000, and the cost of goods sold was 60 percent of sales Selling and administrative expense was $24,500 Depreciation expense was 8 percent of plant and equipment (gross) at...
-
Sales for 2010 were $50,000; cost of goods sold was $35,000. If accounts receivable increased by $2,000; inventory decreased by $1,300; accounts payable decreased by $2,000; and other accrued...
-
Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity: Sales (336,000 units) $4,375,000...
-
Mr. and Mrs. Thomas are buying a new house for $330,000. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment...
-
Presented below is the partial bond discount amortization schedule for Gomez Corp. Gomez uses the effective-interest method of amortization. (a) Prepare the journal entry to record the payment of...
-
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. A party to a contract is released from his or her obligations if a law is passed that...
-
An amount of pure substance equal to \(1 \mathrm{kmol}\) undergoes an irreversible cycle. Neglecting the effects of electricity, magnetism and gravity, state whether each of the following...
-
For a recent 2-year period, the balance sheet of Franklin Company showed the following stockholders?? equity data at December 31 in millions. Instructions(a) Answer the following questions.(1) What...
-
Calculate the following based on the table and show your work. 1 . What is the payback period? 2 . What is the discounted payback period? 3 . What is the NPV ? 4 . What is the IRR? 5 . What is...
-
Write a program that reads an unspecified number of integers, determines how many positive and negative values have been read, and computes the total and average of the input values (not counting...
-
Review the data in Exercise 5-21. Requirements 1. Compute the rate of inventory turnover for the fiscal year ended March 31, 2012, assuming $22,000 in average inventory. 2. The inventory turnover...
-
Consider the following transactions that occurred in May 2012 for High Roller, Inc. May 1 Purchased $3,000 of inventory from P&M, terms 1/10, n/20. 3 Sold $3,500 of goods to Frames R Us, Inc., terms...
-
Use logarithmic differentiation to find the derivative of the function. y = x - 1/x 4 + 1
-
What kind of punishment would a utilitarian say we should give a robber? Please provide a RIGOROUS explanation of why? Consider the following statement: "The government should protect the public from...
-
Anita bought a new computer system. To pay for the system, she borrowed $5730 from the credit union at 8 % interest for 115 days. Find the interest. 5
-
Solve the equation. 7(3x+5)=11-(x + 9) The solution set is (Simplify your answer.
-
Despite repeated legislative attempts to restrict the use of sexual history evidence in trials, it continues to be admitted in many cases, causing considerable debate, and leading to further attempts...
-
Nations that depend on a free-market system see consistent shortages or surpluses of goods and services. Explain
-
Imagine that youre an ethnographer who has been assigned to study your schools culture. How might you go about studying it? What sort of cultural artifacts or rituals would you find?
-
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
-
Intravenous saline injections are given to restore the mineral balance in trauma patients. What is the mass of water required to dissolve 1.50 g of NaCl for a 0.90% normal IV saline solution? We will...
-
The ledger of Gower Corporation at December 31, 2014, contains the following summary data. Your analysis reveals the following additional information that is not included in the above data. 1. The...
-
Your parents are considering investing in PepsiCo common stock. They ask you, as an accounting expert, to make an analysis of the company for them. You can access the current annual report of PepsiCo...
-
PepsiCos financial statements are presented at www.pepsico.com. Financial statements of The Coca-Cola Company are presented at www.coca-cola.com. Instructions (a) Based on the information contained...
-
During 2020, Nike disposed of a machine that had been acquired on January 1, 2014 for a purchase price of $20 million. The machine was being depreciated using the straight-line method, a $4 million...
-
LeBlanc Corp. uses the periodic inventory system and has the following selected information available at its 12/31/X4 year-end: Description Amount Inventory at 1/1/X4 $ 20,000 Inventory at 12/31/X4...
-
Yale Company acquires all of Zip Company's assets and liabilities for $20 million in cash. Zip's reported net assets total $4 million, it has previously unreported identifiable intangible assets of...
Study smarter with the SolutionInn App