Last year, Esmeralda Company had net sales of $400,000,000 and cost of goods sold of $300,000,000. Esmeraldas

Question:

Last year, Esmeralda Company had net sales of $400,000,000 and cost of goods sold of $300,000,000. Esmeralda’s had the following balances:

Required:
1. Calculate the average inventory.
2. Calculate the inventory turnover ratio.
3. Calculate the inventory turnover in days.
4. Based on these ratios, does Esmeralda’s appear to be performing well or poorly?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Accounting The Cornerstone Of Business Decision Making

ISBN: 9780357715345

8th Edition

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

See More Books

Question Posted: Jul 26, 2022 02:34 AM

See More Questions

Refer to the information for Toby's on the previous page. Last year, Toby's Hats had net sales of $45,000,000 and cost of goods sold of $29,000,000. Toby's had the following balances:...
Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
What is the present value of $9,000 received: a. Twenty eight years from today when the interest rate is 10% per year? b. Fourteen years from today when the interest rate is 10% per year? c. Seven...
The purpose of this exercise is to present a scenario that requires you to act in the role of business intelligence (BI) consultant for your university (or college) and produce a report to guide...
Given a set of observations $x_{1}, x_{2}, \ldots, x_{n}$, we define their empirical cumulative distribution as the function whose values $F(x)$ equals the proportion of the observations less than or...
Laminar flow normally persists on a smooth flat plate until a critical Reynolds number value is reached. However, the flow can be tripped to a turbulent state by adding roughness to the leading edge...
Bradley has two classifications of professional staff: partners and associates. Harrington asks his assistant to examine the relative use of partners and associates on the recent Campa Coal and St....
Write (aim, equipment, meth, hypothesis, conclusions, use of the independent variable, the dependent variable, controlled variables, the control) for the experiment of a back titration by yourself to...
It is now January 2018. The year 2017 finished well. The finalized year-end financial statements for 2017 are provided in the excel file associated with this assignment. Randolf and Tenisa at Comfy...
Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been...
Cuneo Companys income statements for the last 3 years are as follows: Required: 1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sales revenue. 2....
Obtain the inverse Laplace transform x(t) for each of the following transforms: a. X(s) = 6/(s(s+4) b. X(s) = (125 + 5)/(s(s+3) c. X(s) = (4s+7)/(s+2)(s+5)) d. X(s) = 5/(s2(2s+8)) e. X(s) =...
On January 1, 2022, John Williams purchased an 8,000-barrel production payment interest from Watershed Oil Company for $800,000. The production payment will be paid out of 1/5 of the working interest...
Referring back to question number 5, assume for purposes of discussion that Tony is found not eligible under the IDEA. What would need to be established for him to be eligible under the ADA or...
Bingo Oil Corporation recently acquired a truck costing $60,000 with an estimated life of five years (ignore salvage value). The foreman drives the truck to oversee operations on seven leases, all in...
The cost structure (%) of an article with a selling price of 45,000 is as follows: An increase of 15 per cent in the cost of material and of 25 per cent in the cost of labour is anticipated. These...
A manufacturer can sell part of the output of process 1 as it is or process it further in process 2. What cost are relevant in a decision to sell it as it is or to process it further? What costs are...
An interesting analysis results from playing with the equation of stefan's law. For dT/dt = k(M4-T4), let k = 0.05, M = 3 T(0) = 4 (a) Estimate T(1) by Euler's method with step sizes h = 0.25, h =...
Integration is a vital concept when applied in one?s life. Integrating your life means making ideal choices. Perfect choices on the other go in line with quality decisions. Quality decisions lead to...
Paxton Company provided the following income statement for last year: Sales................................................$ 87,021,000 Cost of goods sold................................(62,138,249)...
Paxton Company provided the following income statement for last year: Sales................................................$ 87,021,000 Cost of goods sold................................(62,138,249)...
Ernst Company's balance sheet shows total liabilities of $32,500,000, total stockholders' equity of $8,125,000, and total assets of $40,625,000. Required: 1. Calculate the debt ratio. 2. Calculate...
Pangasa Co. paid its annual worker accident insurance premium of $48,000 on its manufacturing facility in January. The company expects two worker accidents to happen during the year, and to make...
3. The game of baseball is often analyzed using Markov models. The state of the game can be represented by listing bases that have runners and keeping track of how many outs there are. There are...
Thornton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials...

Last year, Esmeralda Company had net sales of $400,000,000 and cost of goods sold of $300,000,000. Esmeraldas

Question:

Accounts receivable Inventories January 1 $10,000,000 8,000,000 December 31 $9,500,000 9,000,000

Step by Step Answer:

1 2 3 4 Esmeraldas inventory turnover ratio is 353 times which indicates that on average the company ...View the full answer

Managerial Accounting The Cornerstone Of Business Decision Making

Related Video

Students also viewed these Business questions