Sanchez Wholesale, Inc., has the following information for the years ending May 31, 2012 and 2011: Requirements
Question:
Requirements
1. Compute the rate of inventory turnover for Sanchez Wholesale, Inc., for the years ended May 31, 2012 and 2011. Round the result to two decimal places.
2. Compute the days-sales-in-inventory for Sanchez Wholesale, Inc., for the years ended May 31, 2012 and 2011.
3. What is a likely cause for the change in the rate of inventory turnover from 2011 to2012?
(In thousands) 2012 2011 $228 $226 Cost of Goods Sold: Beginning Inventory $ 32 Net Purchases Cost of Goods Available 171 Ending Inventory Cost of Goods Sold s 35 140 175 32 139 25 Gross Profit Operating Expenses Net Income 146 82 39 S 43 143 83 41 42
Step by Step Answer:
Req 1 2012 Inventory Turnover Cost of Goods Sold 146000 512 ...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
-
Motion Auto has the following information for the years ending December 31, 2014 and 2013: Requirements 1. Compute the rate of inventory turnover for Motion Auto for the years ended December 31, 2014...
-
Hulus Hybrids has the following information for the years ending January 31, 2014 and 2013: Requirements 1. Compute the rate of inventory turnover for Hulus Hybrids for the years ended January 31,...
-
The Cake Factory has the following information for the month of March. Prepare a (a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only...
-
Campione Manufacturing acquired an 80% interest in DaLuca Distributors, a foreign corporation established on November 1, 2006, for 650,000 foreign currency units (FC). Campione acquired its 80%...
-
We have studied several systems where the fraction of medication absorbed depends on the concentration of medication in the bloodstream. These take the form Mt + 1 = Mt - f(Mt)Mt + 1.0 Discuss.
-
Shown are three separate pairs of point charges. Assume the pairs interact only with each other. Rank the magnitudes of the force between the pairs from largest to smallest. +2q -4q +3q +2q -2q
-
In which engine values are used? (a) Two-stroke engine (b) Four-stroke engine (c) In both engines (d) None of the above
-
Your company is running an audit on the Sleaze Company. Because Sleaze has a bad habit of overcharging its customers, the focus of your audit is on checking whether the billing amounts on its...
-
Skuta Pty Ltd Scenario The scenario provides you with a brief overview of a hypothetical company, 'Skuta' and a contemporary scenario. Be aware that the scenario may not cover every detail that you...
-
Kaminsky Ltd manufactures belts and braces. The firm is organized into five departments. These are belt-making, braces making, and three service departments (maintenance, warehousing and...
-
Amtran Enterprises lost its entire inventory in a hurricane that occurred on October 31, 2012. Over the past five years, gross profit has averaged 30% of net sales. The companys records reveal the...
-
Top Line Equipment sells hand held engine analyzers to automotive service shops. Top Line Equipment started November with an inventory of 95 units that cost a total of $11,400. During the month, Top...
-
_____ is a discriminating classifier that is defined by a separating hyperplane that works first to find the widest margin (or biggest pipe) and then works to find the middle line. a. Linear...
-
How might the two-period equimarginal principal be applied to issues such as the optimal extraction of a sustainable resource or pollution?
-
Port Allen Chemical Company processes raw material D into joint products E and F. Raw material D costs $6 per liter. It costs $100 to convert 100 liters of D into 60 liters of E and 40 liters of F....
-
In March 31, 2021, the end of the fiscal year, the preliminary Trial Balance of MSL Manufacturing Company showed the following information: Accounts Payable Accounts Receivable 375,000 500,000...
-
a. Net income was $476,000. b. Issued common stock for $76,000 cash. c. Paid cash dividend of $15,000. d. Paid $120,000 cash to settle a long-term notes payable at its $120,000 maturity value. e....
-
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company's interest expense for the year ended December 31, 2021. Your accounting group provided...
-
(a) Write the intact-compound equation and the net ionic equation for the neutralization reaction that occurs between aqueous solutions of sulfuric acid and potassium hydroxide. (b) What salt would...
-
A 6-lb shell moving with a velocity ?? v0k explodes at point D into three fragments which hit the vertical wall at the points indicated. Fragments A, B, and C hit the wall 0.010 s, 0.018 s, and 0.012...
-
For each of the class projects, develop a Rolling Wave timeline for completion. Write down everything you can think of that could go wrong and a contingency project plan. Advice: Front-load each...
-
Selected data taken from a recent years financial statements of trading card company Topps Company, Inc. are as follows (in millions). Net sales ...................$326.7 Current liabilities,...
-
Selected data taken from a recent years financial statements of trading card company Topps Company, Inc. are as follows (in millions). Net sales ...................$326.7 Current liabilities,...
-
In its draft 2012 income statement, Provision Corporation reports income before income taxes $500,000, extraordinary loss due to earthquake $180,000, income taxes $200,000 (not including irregular...
-
What extent does emotional intelligence among leaders and employees contribute to effective teamwork and conflict resolution, and what methods can be employed to enhance emotional intelligence within...
-
Determine the exponential function y = c(b) that goes through the points (-2, 16) and (1,54). Algebraic work must be shown for full credit.
-
Solve 6. 8. 8 So log x (1 + x)(4+ x) [log x] 2 dx 0 1 + x So dx
Study smarter with the SolutionInn App