Provided below is partial financial information for two pharmacies for the year 20X1. Davis Regional Pharmacy...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Provided below is partial financial information for two pharmacies for the year 20X1. Davis Regional Pharmacy $48,000 $52,000 $62,500 $55,000 Inventory as of January 1, 20X1 Inventory as of December 31, 20X1 Sales revenue Cost of goods sold For each Pharmacy, calculate the Inventory Turnover Ratio and the Gross Margin Percentage. Input your responses in the table below (round to the nearest 2 decimal places, e.g. $1.23). Then, answer the questions below the table. Davis Regional Pharmacy Inventory Turnover Ratio Gross Margin Percentage 1.10 Kelley Community Pharmacy $46,000 $44,000 $56,250 $54,000 Kelley Community Pharmacy (a) Complete the following sentence: An inventory turnover ratio of 2.0 indicates that... (d) Which pharmacy, Davis or Kelley, reported greater profitability? (b) Which pharmacy, Davis or Kelley, turned over its inventory faster? Kelley (c) Complete the following sentence: A gross margin percentage of 20% indicates that... 1.20 176 Provided below is partial financial information for two pharmacies for the year 20X1. Davis Regional Pharmacy $48,000 $52,000 $62,500 $55,000 Inventory as of January 1, 20X1 Inventory as of December 31, 20X1 Sales revenue Cost of goods sold For each Pharmacy, calculate the Inventory Turnover Ratio and the Gross Margin Percentage. Input your responses in the table below (round to the nearest 2 decimal places, e.g. $1.23). Then, answer the questions below the table. Davis Regional Pharmacy Inventory Turnover Ratio Gross Margin Percentage 1.10 Kelley Community Pharmacy $46,000 $44,000 $56,250 $54,000 Kelley Community Pharmacy (a) Complete the following sentence: An inventory turnover ratio of 2.0 indicates that... (d) Which pharmacy, Davis or Kelley, reported greater profitability? (b) Which pharmacy, Davis or Kelley, turned over its inventory faster? Kelley (c) Complete the following sentence: A gross margin percentage of 20% indicates that... 1.20 176
Expert Answer:
Answer rating: 100% (QA)
a An inventory turnover ratio of 20 indicates that t... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
Students also viewed these accounting questions
-
AS OF JANUARY 1 2014 Assets Equity Cash54970Common stock265640 Equity investments availableforsale241420Accumulated other comprehensive income30750 Total296390Total296390 The accumulated other...
-
Assume the beginning inventory as of January 1 Consisted of 500 units that were purchased for $8.25 each. During the month, three new purchases were made. The firs purchase consisted of 700 units...
-
As of January 1 of the current year, the Joyner Company had accounts receivables of $50,000. The sales for January, February, and March were as follows: $120,000, $140,000 and $150,000. 20% of each...
-
The wheelbarrow and its contents have a center of mass at G. If F = 100 N and the resultant moment produced by force F and the weight about the axle at A is zero, determine the mass of the...
-
The market for taxi services in a Midwestern town is monopolized by firm 1. Currently, any taxi services firm must purchase a $40,000 ??medallion?? from the city in order to offer its services. A...
-
K Treasury notes and bonds. Use the information in the following table: What is the price in dollars of the February 2000 Treasury note with semiannual payment if its par value is $100,000? What is...
-
Compute the missing amounts in the following table. (At the end of 2015, retained earnings had a balance of negative $2,086.) Comment on the companys performance over the three-year period after...
-
Championship Sporting Goods started March with an inventory of 9 sets of golf clubs that cost a total of $1,350. During March, Championship purchased 27 sets of clubs for $4,320. At the end of the...
-
How is the use of Information systems in Supply chain management relevant for today's manager
-
Using data from NHANES, we looked at the pulse rate for nearly 800 people to see whether it is plausible that men and women have the same population mean. NHANES data are random and independent....
-
40. What is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 34% $400,000 BBB 29% $1,100,000 CCC 19%...
-
Please give a personal example of each heuristic (it has to be the example from yourself) 1. The Availability Heuristic: 2. Representativeness Heuristic: 3. Affect Heuristic: 4. Anchoring Heuristic:...
-
ABC Corp. expects to make payment of one time lump sum cash flow of $10 million in 10 years. The firm would like to immunize its liability by investing in two different securities: an annuity paying...
-
Find magnitude of shear force and moment at midpoint C of the simply supported beam of the length a (m) under load q (N/m) as shown q C B Step 1. Draw Free Body Diagram Step 2. Formulate Equation of...
-
Suppose that the size of the populatin at time t (in years) is denoted by P(T) and that P(T) satisfies the model: dP/dot = 0.4P -0.001P^2 a) on what intervals is the the population increasing? b)On...
-
There are plenty of good stories to tell about how the social sector helps communities. Impact investing is becoming mainstream. Two forms of investment that aligns funding with positive social...
-
If steam at 375 kPa, having a dryness fraction of 96%, is produced from saturated water at 375 kPa, what amount of heat must be supplied per kilogram?
-
Classify each of the following activities as proper or prohibited under the various consumer statutes you have studied. a. Calling a hospital room to talk to a debtor who is a patient there. b....
-
The chief financial officer (CFO) of Baxter International has employed the use of hedges in a variety of contexts over the first quarter of the current calendar year as follows: Futures Contract The...
-
Explain how a German subsidiarys year-end balance in retained earnings is expressed in dollars assuming that the euro is the functional currency.
-
Turf Company purchases a 30% interest in Minnie Company for $90,000 on January 1, 2011, when Minnie has the following stockholders equity: Common stock ($10 par). . . . . . . . . . . . . . . . . . ....
-
Some corporate executives have reportedly attempted to manage their firms operating revenues through such actions as front-end loading or rear-end loading of operating revenues. Explain the concepts...
-
Investment professionals use a variety of financial ratios to evaluate a companys financial risk. Two popular financial risk ratios include: 1. Long-term debt-to-equity ratio 2. Interest coverage...
-
Describe or define the following key performance indicators (KPIs) from the statement of cash flow: 1. Cash flow from operating activities 2. Cash flow from investing activities 3. Cash flow from...
Study smarter with the SolutionInn App