At 30 June, the following information (in thousands) was available for sunglasses manufacturer, Che Eyewear Ltd: ending
Question:
At 30 June, the following information (in thousands) was available for sunglasses manufacturer, Che Eyewear Ltd: ending inventory $53 322; beginning inventory $39 300; cost of sales $129 201; sales revenue $347 901. Calculate inventory turnover and days in inventory for Che Eyewear Ltd.
Step by Step Answer:
Answer Calculation of Inventory Turnover Ratio Inventory Turnover ...View the full answer
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
The Playa Company has the following information in its records. Certain data have been intentionally omitted ($ in thousands). Required: Determine the missing numbers. Show computations where...
-
The company, North S.L., has the following information in the Balance Sheet and Profit and Loss Account for 2016, before calculating its Corporate Tax: BALANCE SHEET ASSETS LIABILITIES 69.360,00 A)...
-
The 2011 Form 10-K forGap Inc.includes the following information in the note that summa-rizes its accounting policies: Merchandise Inventory We value inventory at the lower of cost or market, with...
-
Ms. Esperanto obtained a $40,000 home equity loan at 7.5% compounded monthly. a. What will she pay monthly if the amortization period is 15 years? b. How much of the payment made at the end of the...
-
What are the key characteristics of an effective international monetary system? Does the current system meet these requirements?
-
The pipe is held in place by the vice. If the bolt exerts force P on the pipe in the direction shown determine the forces FA and FB that the smooth contacts at A and B exert on the pipe. Given: P =...
-
The law of a machine is W = mP + c. True or False
-
Nikola Inc. is considering the purchase of a new industrial electric motor to improve efficiency at its Rochester plant. The motor has an estimated useful life of 5 years. The estimated pretax cash...
-
Harvin Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attach case are $37, $8, and $10, respectively. The president is...
-
Assume that you are advising a regional snack-food manufacturer whose brands have a low share of voice. Which pattern of continuity would you recommend for such an advertiser? Would you place your...
-
Presented here is information related to Djuric Ltd for the month of January 2016. Beginning inventory was $60 060, and ending inventory was $90 090. Required Prepare a fully classified statement of...
-
What is the main basis of accounting for inventories? What is the major objective in accounting for inventories?
-
A student says to you, Catalysts are not used up in chemical reactions because they are not involved in the reactions. Is this statement true or false? Why?
-
8) You obtain a $1000 treasure note with a 6% annual rate, paid semi-annually, with a maturity in 5 years. How much interest will you earn?
-
The Green County school system has 2,997 high school students, 3,831 middle school students, and 5,084 elementary school students. How many total students are in the Green County school system?
-
Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 1 Issue 5% bonds (at face value) $6,000,000 Issue preferred $1 stock, $20 par Issue common stock,...
-
Suppose we knew with a high level of confidence the size of a recessionary gap the economy was experiencing. Does it follow that we would also know with similar confidence how big a policy stimulus...
-
A credit card account with an APR of 16.9% had an average daily balance of $360.4 over billing cycle of 30 days. What would the monthly finance charge be for this account?
-
Let v1, v2, v3 be as in Exercise 13, and let Is w in the subspace spanned by {v1, v2, v3}? Why? 14
-
Marc Company assembles products from a group of interconnecting parts. The company produces some of the parts and buys some from outside vendors. The vendor for Part X has just increased its price by...
-
Compare and contrast Hofstedes and Global Leadership and Organizational Behavior Effectiveness s (GLOBEs) national culture frameworks.
-
Suppose a worker went out of her way to help the boss complete a project on time. Some of her coworkers saw that behavior and thought she was selfishly trying to curry favor with the boss; others saw...
-
What criteria are used by people when attributing a behavior to either external or internal causes? Describe these three criteria.
-
Assume you are the manager of the department where you currently work. If you are not currently working, use a past situation or a hypothetical situation; be sure to describe it. Select two...
-
Juan and Maria Ramiro and Alexandro their 15 year old son, have been renting a townhouse with your agency for the last 3 months. Juan and his wife Maria do not speak or read English well. The Strata...
-
Fynn is 29 and has come to see Clive, a counsellor, because he has recently broken up with his girlfriend Stacey and she has moved out of their shared apartment. Stacey has been attending counselling...
Study smarter with the SolutionInn App