The following data were extracted from the income statement of Hestia Systems Inc.: a. Determine for each
Question:
The following data were extracted from the income statement of Hestia Systems Inc.:
![image](https://dsd5zvtm8ll6.cloudfront.net/si.experts.images/questions/2022/11/636a5b7fa909c_623636a5b7f98986.jpg)
a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round to the nearest dollar and one decimal place.b. What conclusions can be drawn from these data concerning theinventories?
Current Year $2,443,600 158,000 1,221,800 140,000 Preceding Year $2,592,000 130,000 1,440,000 158,000 Sales Beginning inventories Cost of goods sold Ending inventories
Step by Step Answer:
a 1 2 b The inventory position of the business has deteriorated The inventory turnover h...View the full answer
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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 Managerial Accounting questions
-
The following data were extracted from the income statement of Mountain Sports Inc.: a. Determine for each year (1) The inventory turnover (2) The number of days sales in inventory. Round to nearest...
-
The following data were extracted from the income statement of Mountain Sports Inc.: a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round to...
-
The following data were extracted from the income statement of Keever Inc.: a. Determine for each year (1) The inventory turnover and (2) The number of days sales in inventory. Round to the nearest...
-
58. HarperMotors sells 40 cars per month at an average price of $25,000. Thecarrying cost per car is $160 and the fixed order cost is $695. Howmany orders should the company place per year? 2 answers
-
Access the annual financial statements for Indigo Books & Music Inc. by going to www.sedar.com. Select your language preference, then choose "Company Profiles" and "I." Scroll down until you locate...
-
Equipment costing $13,000 with a 10-year useful life and an estimated $3,000 salvage value is acquired and started operating on January 1. The equipment is estimated to produce 2,000 units of product...
-
understand the complex nature of strategy and identify the key points of similarity and difference between different definitions;
-
1. How does the SEIUs plan give Sodexos U.S. workers influence they might not have outside of a union? Do you think the effort described in this case will benefit these workers? Why or why not? 2....
-
Chapter 14 Interest Rate and Currency Swap SAP enters into a nine-year interest rate swap bank. SAP agrees to pay 6% fixed-rate annually on a notional amount of $15,000,000 and receive LIBOR + 0.5%....
-
From the e-Activity, contrast the differences between a stock dividend and a stock split. Imagine that you are a stockholder in a company. Determine whether you would prefer to see the company that...
-
Klick Company and Klack Inc., are large retail department stores. Both companies offer credit to their customers through their own credit card operations. Information from the financial statements...
-
Dell Inc. and Hewlett-Packard Company (HP) compete with each other in the personal computer market. Dell's primary strategy is to assemble computers to customer orders, rather than for inventory....
-
Refer to the lease agreement described in the previous exercise. Assume the contract specified that NRC (the lessor) was to pay, not only the $5,000 maintenance fees, but also insurance of $700 per...
-
How do you assess the managerial challenge posing the decision of having an organization-wide uniform package of compensation and benefits in the present context of organizations having diversity of...
-
what you have to do is make order decisions based on the sales, stock, and delivery cycle of each item. You are making decisions of marking orders from suppliers, and they will deliver the item next...
-
How do advanced relaxation techniques, such as progressive muscle relaxation or guided imagery, contribute to a comprehensive stress management plan ?
-
What role do intermediaries play in intermediation in the market? Do middlemen exist in the online market? How? Talk about the following ideas with examples from real life: (1) the issues with direct...
-
Identify and conduct a 5S project that you could do at home, school, or your place of employment. For each of the 5 steps, define what you would do to address the situation. Describe the outcome. .
-
Explain why credit policies are needed in the hospitality industry. LO4
-
A red card is illuminated by red light. What color will the card appear? What if its illuminated by blue light?
-
Programs like i2s Analysts Notebook and Xanalys Link Explorer perform link analysis. (True/False)
-
Service Corporation has the following capital stock outstanding at the end of 2011: Preferred stock, 6 percent, par $15, outstanding shares, 8,000 Common stock , par $8, outstanding shares, 30,000 On...
-
A recent annual report for Sears, Roebuck and Co. disclosed that the company paid preferred dividends in the amount of $119.9 million. It declared and paid dividends on common stock in the amount of...
-
Duke Energy is a utility company that provides gas and electric service in North Carolina, South Carolina, Ohio, Kentucky, and Indiana. The companys dividend yield is 6.6 percent. Starbucks, a...
-
Draw an interaction diagram for the following contract: If a collaboration diagram is used, be sure that all messages' sequence numbers are shown. Contract: Scheduling a Flight Operation:...
-
Columbus Industries makes a product that sells for $37 a unit. The product has a $29 per unit variable cost and total fixed costs of $10,000. At budgeted sales of 1,950 units, the margin of safety...
-
18. Suppose that Maxima shares are selling for $10 per share and you own a call option to buy Maxima shares at $7.50. The intrinsic value of your option is:
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App