Old Mills's income statement appears as follows (amounts in thousands): Use the following ratio data to complete
Question:
Use the following ratio data to complete Old Mills's income statement:
1. Inventory turnover is 3.70 (beginning Merchandise Inventory was $810; ending Merchandise Inventory was $770).
2. Profit margin ratio is 14%.
OLD MILLS Income Statement Year Ended December 31, 2018 $ 6,900 Net Sales Revenue (a) Cost of Goods Sold Selling and Administrative Expenses 1,710 (b) Interest Expense Other Expenses 120 Income Before Income Taxes 1,150 (c) Income Tax Expense (d) Net Income
Step by Step Answer:
OLD MILLS Income Statement Year Ended December 31 2018 ...View the full answer
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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 Financial Accounting questions
-
A skeleton of Landmark Mills income statement appears as follows ( amounts in thousands): Use the following ratio data to complete Landmark Mills income statement: 1. Inventory turnover was 3.50...
-
A skeleton of Athol Country Florists income statement appears as follows (amounts in thousands): Income Statement Net sales.......................................$7,500 Cost of goods...
-
A skeleton of Hill Country Florist Limited's income statement appears as follows (amounts in thousands): Income Statement Net...
-
Question. Consider the inverse demand function P=20-Q and the inverse supply function P=2+Q. Find (a) equilibrium price P* and Q*, (b) consumers surplus (CS), producers surplus (PS) and the total...
-
Figure shows a resistor of resistance R = 6.00? connected to an ideal battery of emf ? = 12.0V by means of two copper wires. Each wire has length 20.0 cm and radius 1.00 mm. In dealing with such...
-
The Charmatz Corporation has a central copying facility. The copying facility has only two users, the Marketing Department and the Operations Department. The following data apply to the coming budget...
-
Provide examples for composite and collection objects. How do they differ?
-
The following summarized data (amounts in millions) are taken from the September 27, 2014, and 1.0 3, 4, 6, 7 September 28, 2013, comparative financial statements of Apple Inc., a manufacturer of...
-
find the domain for this function, g(t)=3-1-2+1
-
This question draws from the tables in the previous question. Let us try to get an idea of what it would cost an American family at todays prices to purchase the bundle consumed by an average Swedish...
-
1. Compute earnings per share (EPS) for 2018 for Accel's. Round to the nearest cent. 2. Compute Accel's Companies' price/earnings ratio for 2018. The market price per share of Accel's stock is...
-
Traditional Mills's balance sheet appears as follows (amounts in thousands): Use the following ratio data to complete Traditional Mills's balance sheet. 1. Current ratio is 0.72. 2. Acid-test ratio...
-
Mr. Isen was the owner of a 17-foot pleasure boat. After a day of boating on the lake and loading the boat on its trailer in preparation for transporting it on the highway was securing the boat with...
-
What is the goal of input design?
-
What is the purpose and the major activity of the construction phase?
-
What are the four common conversion strategies?
-
Who are typically involved in conducting system testing in the implementation phase?
-
What is the difference between OMR and OCR?
-
On January 1, 2019, Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10 warrants, and each warrant allows the holder to acquire one share of $1 par common...
-
A genetically engineered strain of Escherichia coli (E. coli) is used to synthesize human insulin for people suffering from type I diabetes mellitus. In the following simplified reaction scheme,...
-
What type of account is Organization Costs? Briefly describe how to account for organization costs under ASPE.
-
You have been asked to consider investing in ASAP Printing Services Inc. Additional information: Total assets at January 1, 2019, were $4,050,000. Net income for 2019 was $420,000. No new shares were...
-
Tahini Inc.s 2019 financial statements reported the following items with 2018 figures given for comparison: Compute Tahini Inc.s return on assets for 2019. Round the answer to 2 decimal places....
-
In the diagram, let U = {all objects}, B = {all students who live in Hartford}, = {students majoring in math}, and R = {students taking a course with Professor Antonio} B M 1 2 3 5 + 6 7 8 R In which...
-
Risk Identification: Disruption Disruption Assessment: Assessment: Risk Risk Probability Risk 1: Cyberwarfare 1 Consequence 5 Risk 2: Natural 1 5 Diaster Risk 3: Supplier 2 2 closure Risk 4:...
-
How may price floors and ceilings destroy market equilibrium? How does the shape of the indicator line on the graph show diminishing returns? Monthly rent A Price Ceiling on Rent B $900 $800...
Study smarter with the SolutionInn App