White Water Kayak, Inc., has the following information as of December 31, 2012: Requirements 1. Compute the
Question:
Requirements
1. Compute the rate of inventory turnover for White Water Kayak, Inc., for the year ended December 31, 2012. Round the result to two decimal places.
2. The rate of inventory turnover for White Water Kayak, Inc., was 16.93 in 2011. Has the rate improved ordeteriorated?
Sales Revenue Cost of Goods Sold $1,752,300 Beginning Inventory Net Purchases Cost of Goods Available Ending Inventory Cost of Goods Sold 35,000 750,600 785,600 48,700 Gross Profit Operating Expenses Net Income -70C736,900 1,015,400 66,000 S 949400
Step by Step Answer:
Req 1 Inventory Turnover Cost of Goods Sold ...View the full answer
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
-
Gibsons Nursery has the following information as of December 31, 2014: Requirements 1. Compute the rate of inventory turnover for Gibsons Nursery for the year ended December 31, 2014. Round the...
-
Wild Things, Inc., has the following information as of December 31, 2018: Requirements 1. Compute the rate of inventory turnover for Wild Things, Inc., for the year ended December 31, 2018. Round the...
-
Wild Things, Inc., has the following information as of December 31, 2016: Requirements 1. Compute the rate of inventory turnover for Wild Things, Inc., for the year ended December 31, 2016. Round the...
-
Lets assume the client in the fact pattern in this weeks discussion board did not want to purchase the mothers house (in other words, forget about only those facts) and now has been appointed as the...
-
If there are n seeds, each sprouts and grows to a size s = 100/n + 5. An adult of size s produces s - 1 seeds. Crowded plants grow to smaller size. Smaller plants make fewer seeds. The following...
-
So you're on a run of bad luck, and you slip quietly into a small, calm pool as hungry crocodiles lurking at the bottom are relying on Pascal's principle to help them to detect a tender morsel. What...
-
Explain with the help of neat sketches, the working of two stroke petrol engine.
-
What financial statement misrepresentations may result from an inconsistently applied credit policy? Be specific.
-
LeMans Company produces specialty papers at its Fox Run plant. At the beginning of June, the following information was supplied by its accountant Direct materials Inventory Work-in-process inventory...
-
Mrs. Rusholme engaged the firm of Saunders and Watts Ltd. to refinish floors in certain rooms of a home owned by her and her husband in Red Deer, Alberta. She told Mr. Saunders that she and her...
-
Sounds on Wheels sells and installs audio equipment. During a recent fire that occurred at its warehouse, Sounds on Wheels entire inventory was destroyed. Sounds on Wheels accounting records reflect...
-
Underwater World carries a line of waterproof watches. Underwater World uses the FIFO method and a perpetual inventory system. The sales price of each watch is $185. Company records indicate the...
-
The American chemist Robert S. Mulliken suggested a different definition for the electronegativity (EN) of an element, given by where IE is the first ionization energy and EA the electron affinity of...
-
es Fickel Company has two manufacturing departments-Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $14.00 per direct labor-hour and $10.00...
-
3. Suppose that the US market and the Japanese market are segmented, but the CAPM holds within each market. A US company (ZYX) wishes to raise additional capital and its CEO figures that the beta of...
-
In this scenario you and your colleagues have been appointed to plan a short presentation. This presentation aims to pitch a new service your agency has developed to a group of new clients. Reflect...
-
Looking just at the present, how will the changes in the way care is provided (delivery) change the needs of the patient who wants to be more involved in the decisions of their care?
-
1. A proposed project has a negative NPV. Does it mean that the project has a negative IRR? Why or why not? 2. Does including the tax consequences of estimated future cash flow in DCF models likely...
-
What is the maximum number of electrons in each of the following sublevels? (a) 2s (b) 4p (c) 3d (d) 5f.
-
A parking lot charges $3 for the first hour (or part of an hour) and $2 for each succeeding hour (or part), up to a daily maximum of $10. (a) Sketch a graph of the cost of parking at this lot as a...
-
During the scope definition phase, what is one question that you should never lose sight of? And how do you answer this question? What five tasks should occur during the scope definition phase?
-
On September 1, 2012, the following were the account balances of Worthington Equipment Repair. During September, the following summary transactions were completed.Sept. 8 Paid $1,100 for salaries due...
-
Gina Balistrieri opened Genie Cleaners on March 1, 2012. During March, the following transactions were completed. Mar. 1 Issued 10,000 shares of common stock for $15,000 cash. 1 Purchased used truck...
-
Cookie Creations is gearing up for the winter holiday season. During the month of December 2011, the following transactions occur. Dec. 1 Natalie hires an assistant at an hourly wage of $8 to help...
-
Bierce Corporation has two manufacturing departments--Machining and Finishing. The company used the following data at the beginning of the year to calculate predetermined overhead rates: Estimated...
-
Discuss how communication channels have changed over the years due to technology.
-
ow do synergistic dynamics emerge within high-performance teams, and what role do diverse skill sets, complementary roles, and shared goals play in fostering collaborative innovation and collective...
Study smarter with the SolutionInn App