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
frosja888 [35]
3 years ago
9

inventory Turnover and Days' Sales in Inventory The following financial statement data for years ending December 31 for Holland

Company are shown below. 20Y4 20Y3 Cost of merchandise sold $1,489,200 $945,934 Inventories: Beginning of year 359,160 251,120 End of year 516,840 359,160 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Y3 b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 20Y4 days 20Y3 days
Business
1 answer:
Varvara68 [4.7K]3 years ago
4 0

Answer:

                                            Year 2014           Year 2013

a) Inventory Turnover ratio 3.4 times  and   3.1 times

b) Number of days' sales in inventory 107.3 days and  117.7 days

Explanation:

As per the data given in the question,

As we know that

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

where,

Average inventory

= (Beginning inventory + ending inventory) ÷ 2

For Year 20Y4 :

Average inventory = ($359,160 + $516,840 ) ÷2

= $438,000

And, the cost of goods sold is $1,489,200

So,

Inventory Turnover ratio

= $1,489,200 ÷ $438,000

= 3.4 times

For Year 20Y3 :

Average inventory = ($251,120 + $359,160) ÷ 2

= $305,140

And, the cost of goods sold is $945,934

So,

Inventory Turnover ratio

= $945,934 ÷ $305,140

= 3.1 times

Now

Number of days' sales in inventory = Number of days in a year ÷ Inventory Turnover ratio

For 20Y4

= 365 days ÷ 3.4

= 107.3 days

For 20Y3

= 365 days ÷ 3.1

= 117.7 days

Basically we applied the above formulas

You might be interested in
What is the current GDP? (Gross Domestic Product)
DENIUS [597]
Quarterly data: Real gross domestic product (GDP) increased at an annual rate of 3.2 percent in the third quarter of 2017, according to the "third" estimate released by the Bureau of Economic Analysis. In the second quarter, real GDP increased 3.1 percent.
6 0
3 years ago
The viability and relevancy of insurance products sold to businesses and individual?
ratelena [41]
It would be better if you attached more information about this question as it's quite difficult to find out what you need. I can help you by telling some words about t<span>he viability and relevancy of insurance products. It helps you when you keep factory that produces unusual things and makes that business more stable.</span>
6 0
3 years ago
Write adiary of a shopping day write down adetailed reflecion of that using guidline of reflective writing
Marianna [84]

Answer:

b Write adiary of a shopping day write down adetailed reflecion of that using guidline of reflective writing

Explanation:

5 0
2 years ago
The midpoint method is used to compute elasticity because it A. automatically rounds quantities to the nearest whole unit. B. gi
gizmo_the_mogwai [7]

Answer:

B. gives the same answer regardless of the direction of change

Explanation:

The computation of the price elasticity of demand using mid point formula is shown below:

Price elasticity of demand = (Percentage change in quantity demanded) ÷ (percentage change in price)

where,

Percentage change in quantity demanded is

= (change in quantity demanded ÷ average of quantity demanded)

And,

The percentage change in price is

= (percentage change in price ÷ average of price)

Therefore, it reflects the same answer  

6 0
3 years ago
A present value of $2600 is invested in an account with an annual interest rate of 4.1% . Determine the minimum amount of time r
Olin [163]

Answer:

The minimum amount of time required is:

26.82 years.

Explanation:

Present value = $2,600

Future value = $7,800 ($2,600 * 3)

Annual interest rate = 4.1%

Monthly interest rate = 4.1%/12 = 0.342%

$2,600 will need to be invested for 321.781 (26.82 years) periods to reach the future value of $7,800.00.

FV (Future Value) $7,800.00

PV (Present Value) $2,600.00

N (Number of Periods) 321.781

I/Y (Interest Rate) 0.342%

PMT (Periodic Payment) $0.00

Starting Investment $2,600.00

Total Principal $2,600.00

Total Interest $5,200.00

5 0
2 years ago
Other questions:
  • Xerox, the U.S. Postal​ Service, and​ McDonald's have enjoyed significant market power in the past. List and explain three major
    5·1 answer
  • Which of the statements below is​ FALSE? A. Preferred stock does not have a maturity date. B. Preferred​ shareholders' dividend
    8·1 answer
  • Brazen Inc. sells bonds with a face value of $1,000,000 and a contractual interest rate of 10% for $1,200,000. The bonds will ma
    6·1 answer
  • A store that sells a huge variety of one type of product such as books, in order to dominate that category is called a category
    14·1 answer
  • Amy, Allyson, and Kelly work in different teams at Oaktown Powersports. Amy's team ensures that all the raw materials, machinery
    13·1 answer
  • Which of the following would cause the U.S. demand curve for Japanese yen to shift to the right?
    15·1 answer
  • Consider the following​ situation, which involves two options. Determine which option is less expensive. Are there unstated fact
    13·1 answer
  • On January 1, Year 3, a company changed its inventory costing method from LIFO to FIFO. The company’s Year 3 financial statement
    6·1 answer
  • A policy that changes the natural rate of unemployment changes: a. neither the long-run Phillips curve nor the long-run aggregat
    6·1 answer
  • The following monthly data are available for Waterway Industries. which produces only one product: Selling price per unit, $54;
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!