1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kruka [31]
3 years ago
9

John Company has cost of goods sold of $100,000. Beginning inventory is $1,500 and ending inventory is $2,000. Calculate John Co

mpany's inventory turnover.
Business
1 answer:
DochEvi [55]3 years ago
4 0

Answer:

57.14

Explanation:

Inventory Turnover is a ratio to show how many times a company has used, sold and replaced inventory (stock) over a given period of time.

It is calculated as follows:

Cost of Goods Sold / Average Inventory

To calculate that, we need find out average inventory, which is:

(Inventory at beginning + inventory at end) / 2

That is: ($1500 + $2000) / 2 = $1750.

Thus, inventory turnover is:

$100,000 / $1750 = 57.14 (approx. 2 decimal places)

You might be interested in
Portions of the financial statements for Peach Computer are provided below.
mamaluj [8]

Answer:

$128,100

Explanation:

PEACH Computer

Statement of cash flow using direct method for the year ended 31 December 2018.

Cash flows from operating activity

Net income. $91,000

Adjustment to reconcile net income to net cash from operations

Depreciation expense. $47,000

Changes in working capital

Decrease in accounts re. $4,200

Increase in inventory. ($18,500)

Decrease in prepaid rent $1,700

Increase in accounts Payable $6,500

Decrease in Income tax Payable ($3,800)

Net cash flow from operating activities

$128,100

4 0
3 years ago
Because ________ often make it possible for young firms to provide services that are equivalent or superior to an incumbent, a n
kenny6666 [7]

Answer:

B. Digital Technologies

Explanation:

The term that goes in the blank line is Digital Technologies. These technologies are various different electronic tools, systems, devices, and resources that allow the firm to generate, store, and process data. These devices and systems give the firms the ability to compete and have an edge over the bigger firms of the industry by using them in a unique and more effective way towards accomplishing their end-goal and improving the customer's experience.

6 0
3 years ago
Taylor Bank lends Guarantee Company $117,933 on January 1. Guarantee Company signs a $117,933, 9%, nine-month note. The entry ma
sweet [91]

Answer:

January 1, 202x, bank loan obtained from Taylor Bank (9 months, 9% interest rate)

Dr Cash 117,933

    Cr Notes payable 117,933

Explanation:

Since this is an interest bearing note that will be paid in less than a year, we should record it at face value. All current liabilities must be recorded at face value.

5 0
3 years ago
Parr Hardware Store had net credit sales of $6.5mil and cost of goods sold of $5mil for the year. The Accounts Receivable balanc
kifflom [539]

Answer:

Accounts Receivables Turnover Ratio = \frac{6,500,000}{650,000} = 10 times.

Explanation:

Accounts Receivables Turnover ratio = \frac{Net \:Credit \: Sales}{Average \: Receivables}

Here Net Credit Sales = $6.5 million

Accounts Receivables Opening Balance = $600,000

Accounts Receivables Closing Balance = $700,000

Average Accounts Receivable Balance = \frac{600,000 \:+ 700,000}{2} = 650,000

Accounts Receivables Turnover Ratio = \frac{6,500,000}{650,000} = 10 times.

This shows that accounts receivables are on an average 1/10th of credit sales.

Final Answer

Accounts Receivables Turnover Ratio = \frac{6,500,000}{650,000} = 10 times.

3 0
3 years ago
If you use your ATM card, you should write the transaction in your check register.
lozanna [386]
True hope I help u out
3 0
3 years ago
Read 2 more answers
Other questions:
  • Meadow Company produces hand tools. A sales budget for the next four months is as follows: March 10,500 units, April 13,600, May
    10·1 answer
  • The amount of money you can charge to a credit card is called
    6·1 answer
  • Today, the loyalty of a knowledge worker to his or her employing firm has __________ compared to his or her loyalty to his or he
    7·1 answer
  • An investment project has an initial cost of $260 and cash flows $75, $105, $100, and $50 for Years 1 to 4, respectively. The co
    12·2 answers
  • Naomi and Matt received the following amounts from a tenant who is renting their condominium during the current year (rent is $1
    8·1 answer
  • What is the role of the Federal Deposit Insurance Corporation?
    8·1 answer
  • Open market operations:___________.
    7·1 answer
  • The United States and the Soviet Union felt they were in an ideological war between freedom and democracy and _____ and communis
    15·1 answer
  • Andy Roddick is the new owner of Ace Computer Services. At the end of August 2014, his first month of ownership, Roddick is tryi
    9·1 answer
  • The airlines sold fewer tickets to business travelers during the "Great Recession" due to more companies using video conferencin
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!