a. Calculate the inventory turnover for 2020 for each company (round to two decimal places). b. Can
Question:
a. Calculate the inventory turnover for 2020 for each company (round to two decimal places).
b. Can you compare these companies? Explain.
c. Review the turnover for Fresh-Cut Flowers Inc. Does this result appear to be logical? Explain why or why not.
(millions of $) Custom Furniture Corp Furniture Retailers Fresh-cut Flowers Inc. Computer Inc. 2020 2019 2019 2019 2020 2020 2020 2019 $1,491 $1,009 $3,345 $2,270 $2,040 271 $2,685 22 $2,670 $1,770 174 Cost of goods sold. Inventory. 258 222 130 87
Step by Step Answer:
a Computer Inc Furniture Retailers FreshCut Flowers Inc Custom Furniture Co...View the full answer
Fundamental Accounting Principles Volume II
ISBN: 978-1260305838
16th Canadian edition
Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann
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 Business questions
-
The Robinson Company had a cost of goods sold of $1,000,000 in 2014 and $1,200,000 in 2015. a. Calculate the inventory turnover for each year. Comment on your findings. b. What would have been the...
-
Calculate the inventory turnover, days sales in inventory, receivables turnover, days sales in receivables, and total asset turnover ratios for 2010 and 2011 for Tyler Toys. Should any of these...
-
Calculate the inventory turnover, days' sales in inventory, receivables turnover, days' sales in receivables, and total asset turnover ratios for 2013 and 2014 for Tyler Toys. Should any of these...
-
Give examples of three exceptions to the Cardozo rule of foreseeability.
-
Prove that a set with n elements has n(n 1)/2 subsets containing exactly two elements whenever n is an integer greater than or equal to 2.
-
When British regulators were forced to suspend the license of a flu vaccine plant in Liverpool operated by the Chiron Corporation due to concerns over bacterial contamination, the number of flu...
-
Mrs. Palsgraf was waiting for a train on a platform of a railroad. When a different train came into the station, two men ran to get on that train before it left the station. While one of the men...
-
Green Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Fixed costs are $620,000. Instructions (a) Compute...
-
Based on the Lease Obligations by Year visualization, do the results make sense? Select answer from the options below No. There is a decreasing trend in finance lease and operating lease obligations,...
-
A ride hailing company has their DB structured in 3 major tables as described in the SCHEMA section below. Write a query to fetch the top 100 users who traveled the most distance using the service....
-
The 2020 four-year comparative financial statements of Digital Shelf Space Corp. follow: Required 1. Calculate the following for 2020 and 2019 and identify whether the ratios compare favourably (F)...
-
On December 31, 2020, University Security Inc. showed the following: Required Part 1: Calculate book value per common share and preferred share at December 31, 2020, assuming no dividends were...
-
Explain the hit ratio in cache memory.
-
Fix the bug.
-
Kool, Paralegal, works at a law firm. On April 4th, while Kool's supervising attorney is out of the office at court, Kool meets with a new client. The client must file an answer to a complaint on...
-
What is the expected outcome of economic convergence between low and high-income nations? Explain
-
5) Discuss the aspects of forest management to which the painters most strongly objected on artistic and ecological grounds. What does the slogan "pine to dine" tell you about the artists'...
-
What is the journal entry to book the employees gross earnings and withholdings and net pay? explain.
-
On January 2, 2015, Yuki Sporting Goods Ltd. purchased branding equipment at a cost of $63,000. Before placing the equipment in service, the company spent $2,200 for delivery, $4,000 to customize the...
-
In Exercises 15 through 30, find the derivative dy/dx. In some of these problems, you may need to use implicit differentiation or logarithmic differentiation. y ex + et -2x 1 + e
-
What does each type of ratio measure? (a) Liquidity ratios. (b) Solvency ratios. (c) Profitability ratios.
-
What is the difference between the current ratio and working capital?
-
Which ratios should be used to help answer each of these questions? (a) How efficient is a company in using its assets to produce sales? (b) How near to sale is the inventory on hand? (c) How many...
-
PrimeTech sold $2,000,000 of merchandise on account during the current year. The cost for this merchandise to PrimeTech was $600,000. To encourage early payment from its customers, PrimeTech offers...
-
The board of directors of Long River Limited is meeting to discuss the past years results before releasing financial statements to the public. The discussion includes this exchange of conversation:...
-
Understanding Grubhub's Service Quality 1. Which service gaps is GrubHub currently addressing? 2. How might GrubHub address the remaining service gaps? 3. Evaluate how GrubHub meets customer...
Study smarter with the SolutionInn App