The following financial statement data for years ending December 31 for Holland Company are shown below. a.
Question:
The following financial statement data for years ending December 31 for Holland Company are shown below.
a. Determine the inventory turnover for 2014 and 2013.
b. Determine the number of days’ sales in inventory for 2014 and 2013. Round to one decimal place.
c. Does the change in inventory turnover and the number of days’ sales in inventory from 2013 to 2014 indicate a favorable or an unfavorabletrend?
2014 2013 Cost of merchandise sold Inventories 1,452,500 $1,120,000 Beginning of year End of year 380,000 450,000 320,000 380,000
Step by Step Answer:
a b c The increase in the inventory turnover from 32 to 35 and the decrease in the number ...View the full answer
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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 financial statement data for years ending December 31 for Foodworks Company are shown below.a. Determine the ratio of net sales to assets for 2012 and 2011.b. Does the change in the...
-
The following financial statement data for years ending December 31 for Foodworks Company are shown below. a. Determine the ratio of net sales to assets for 2012 and 2011. b. Does the change in the...
-
The following financial statement data for years ending December 31 for Gillispie Company are shown below. a. Determine inventory turnover for 2012 and 2011. b. Determine the number of days sales in...
-
State the date (or dates) on which corporation tax is due for payment in relation to the following periods of account: (a) the year to 31 March 2021 (b) the six months to 30 November 2020 (c) the 21...
-
Write a balanced equation for the reaction that occurs in each of the following cases: (a) Ozone decomposes to di oxygen. (b) Xenon reacts with fluorine. (Write three different equations.) (c) Sulfur...
-
The temperature, T C , of a hot drink, t minutes after it is made, can be modelled by the equation T = 25 + ke nt , Where k and n are constants. The table below shows experimental values of t and T....
-
How can we use packaging to structure modeling artifacts?
-
Harper Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak....
-
J. Clancy owns Clancy Consulting. On December 31 of the prior year, the Retained Earnings account balance was $27,000. During the current year, the company paid $13,800 in cash dividends. Clancy...
-
A news report states that minority children who take advanced mathematics courses in high school have a first-year GPA in college that is equivalent to that of white students. The newspaper columnist...
-
During the taking of its physical inventory on December 31, 2014, Waterjet Bath Company incorrectly counted its inventory as $728,660 instead of the correct amount of $719,880. Indicate the effect of...
-
The following financial statement data for years ending December 31 for Tango Company are shown below. a. Determine the inventory turnover for 2014 and 2013. b. Determine the number of days sales in...
-
______ ______ refers to meeting economic and legal responsibilities but not going beyond them.
-
Someone criticizes the government for increasing interest rates but approving the increase in government spending. They are criticizing the government ?? s _ _ _ _ _ _ _ _ policy and praising the...
-
You build a canvas app for a company. The company approves the app for production use. You need to share the app with 5 0 5 0 specific internal users. These users must not be able to update the app...
-
What is the display output for a , , b ? ? module display _ _ eg ( ) ( ) ;reg 1 2 1 2 : 0 1 0 1 a , , b;reg ( 2 ( 2 : 0 1 0 1 c;initial beginSmonitor ( * 1 ( * 1 st a 4 0 - 4 0 d , , b = % 0 = % 0 d...
-
(a) (b) Use an appropriate diagram to briefly describe the general design approach to place pole locations of a closed-loop system in state-space notation. [5] A system can be represented in...
-
Please write an "Image Recognition Algorithm" in deep learning step by step from input to output with the calculation of writing in the algorithm. In the form of an algorithm pseudo code
-
Among all ethers with the formula C 4 H 6 O, draw structures for (a) Two ethers with two sp 2 and two sp 3 carbon atoms, (b) An ether with four sp 2 carbon atoms, (c) An ether with two sp and two sp...
-
Sundial Technologies produces and sells customized network systems in New Brunswick. The company offers a 60-day, all software and labor-and an extra 90-day, parts-only- warranty on all of its...
-
The purpose of the test setup in Figure P10-64 is to deliver damped sine pulses to the test load. The excitation comes from a 1 -Hz square wave generator. The pulse conversion circuit must deliver...
-
Guardian Security Services was established on January 15, 2016, to provide security services. The services provided during the remainder of the month are as follows: Jan. 18. Issued Invoice No. 1 to...
-
Plumb Line Surveyors provides survey work for construction projects. The office staff uses office supplies, while surveying crews use field supplies. Purchases on account completed by Plumb Line...
-
The transactions completed by AM Express Company during March 2016, the first month of the fiscal year, were as follows: Mar. 1. Issued Check No. 205 for March rent, $2,450. 2. Purchased a vehicle on...
-
2. Consider the metal ion complex ferricyanide, [Fe(CN)6], obtained when potassium hexacyanoferrate(III) is dissolved in solution. a) Predict the number and intensity of all its ligand field (d-d)...
-
16) Chris, Bob, and Matt decide to help each other study during the final exams. Chris's favorite subject is chemistry, Bob loves biology, and Matt knows his math. Each studies his own subject as...
-
Match the column A with column B and Give Supported explanations. E Charge 1 Charge 2 Distance Apart Force Attracted/Repelled / Neither Trial 1 -4 C 4 cm Trial 2 -4 C -2 C 4 cm Trial 3 -4C -4C 4 cm...
Study smarter with the SolutionInn App