Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Laurel, Inc. had net sales of $9,375,000 and cost of goods sold of $4,828,000. Laurel had the following balances: January 1 $725,000 December 31 $775,000 450,000 425,000 Accounts receivable Inventory Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. $ 2. Calculate the inventory turnover ratio. times 3. Calculate the inventory turnover in days. days 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly? 1. Based on the ratios Nikkola is performing very well. 2. Based on the ratios Nikkola is not performing as expected. Proct 3. Without more detailed information on Nikkola's and its industry, it is difficult to classify these results as outstanding, poor, or somew in between Previous Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last year, Laurel, Inc. had net sales of $9,375,000 and cost of goods sold of $4,828,000. Laurel had the following balances: January 1 $725,000 December 31 $775,000 450,000 425,000 Accounts receivable Inventory Required: Note: Round answers to one decimal place. Assume 365 days per year. 1. Calculate the average inventory. $ 2. Calculate the inventory turnover ratio. times 3. Calculate the inventory turnover in days. days 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly? 1. Based on the ratios Nikkola is performing very well. 2. Based on the ratios Nikkola is not performing as expected. Proct 3. Without more detailed information on Nikkola's and its industry, it is difficult to classify these results as outstanding, poor, or somew in between Previous
Expert Answer:
Answer rating: 100% (QA)
To calculate the average inventory inventory turnover ratio and inventory turnover in days well use ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
Annapolis Company purchased a $2,000, 7%, 9-year bond at 99 and held it to maturity. The straight line method of amortization is used for both premiums & discounts. What is the net cash received...
-
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...
-
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these...
-
An article in The Wall Street Journal indicated that dressmaker Fallo Me (name changed) backdated invoices to record revenue in the quarter before sales were actually made. As long as sales remained...
-
Anita Maxwell Company expects the following for 2007: Net cash provided by operating activities of $150,000 Net cash provided by financing activities of $60,000 Net cash used for investing...
-
Interpreting common-size income statements Exhibit 4.7 presents common-size income statements for Standard Denim and Blue Label Jeans, two apparel retailing firms, for three recent years. In addition...
-
A car is driving along the highway when its driver sees a traffic jam ahead. The driver hits the brakes, causing a uniform acceleration of magnitude 2.0 m/s^2, and reduces the speed of the car to...
-
The instructor should expect students to differ in their level of agreement with Thorstein Veblens notion that women often are used as a vehicle to display their husbands wealth. They should be...
-
What is different about hedging contingent transaction exposures? What are the most appropriate instruments and techniques for hedging transaction exposures?
-
Discuss the different challenges facing an exporting firm.
-
Why do firms generally hedge less than their full exposure? What does it say about their attitude toward risk?
-
What are the conditions for successful disintermediation?
-
What is different about hedging long-term transaction exposures?
-
Define the optimal fraction of debt and the growth rate of a firm. What is the relationship between the two?
Study smarter with the SolutionInn App