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timofeeve [1]
3 years ago
11

Wagon Department Store had net credit sales of $16,000,000 and cost of goods sold of $15,000,000 for the year. The average inven

tory for the year amounted to $2,000,000. Inventory turnover for the year is:
Business
1 answer:
miv72 [106K]3 years ago
8 0

Answer:

7.5 times

Explanation:

Inventory turnover = \frac{Cost \: of\: goods\: sold}{Average\: Inventory}

We have been provided that,

Cost of goods sold = $15,000,000

Average inventory for the year = $2,000,000

Therefore, Inventory Turnover ratio = \frac{15,000,000}{2,000,000}

= 7.5 times

It means on an average how many times the inventory is sold, and replaced during the period.

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Albright Company purchased as a long-term investment $500,000 of Benton Corporation 10-year, 9% bonds. Required: Present entries
katen-ka-za [31]

Answer:

March 1, purchased securities from Benton Corporation:

Dr Investment in securities 500,000

    Cr Cash 500,000

May 1, sold half of securities plus accrued interest:

Dr Cash 248,550

Dr Loss on investment in securities 5,000

Dr Brokerage fees 200

    Cr Investment in securities 250,000

    Cr Interest revenue 3,750

Securities were sold at 98 or $250,000 x 98% = $245,000, which means that the company lost $5,000 with that investment.

5 0
3 years ago
Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm
m_a_m_a [10]

Answer:

The correct answer is $23,430.

Explanation:

According to the scenario, the given data are as follows:

Total actual revenue = $1,700,000

Irvine Center actual revenue = $561,000

Advertising cost = $71,000

So we can calculate the amount of advertising that would be allocated to the Irvine center by using following formula:

Advertising Cost allocated = (Irvine Center actual revenue × Advertising cost)   ÷ Total actual revenue

By putting the value, we get

= ($561,000 × $71,000)  ÷ ( $1,700,000)

= $23,430.

3 0
3 years ago
To increase total asset turnover, management must either increase sales or reduce total stockholders’ equity.A. TrueB. False
8090 [49]

Answer:

<u><em>FALSE</em></u>

Explanation:

Remember, total asset turnover is calculated using a ratio that measures how the management was able to use its assets to efficiently increase sales. Usually the total asset turnover is gotten by dividing a<em> company's sales </em>by its <em>total assets.</em>

<em />

To increase sales, management should <em>continue</em> to use its existing assets (not making purchase of any new asset), and at the same time reducing their purchases of inventory.

7 0
3 years ago
Depreciation by Two Methods
lesya [120]

The amount of annual depreciation by the straight-line method is $18,800.

<h3>Annual depreciation</h3>

a.  Annual depreciation

Annual depreciation=[($80,000 - $4,800) ÷ 4]

Annual depreciation=$18,800

b. Annual depreciation

Year 1 Annual depreciation= 10% × $80,000

Year 1 Annual depreciation = $8,000

Year 2 Annual depreciation= 10% × ($75,000 - $7,500)

Year 2 Annual depreciation = $7,520

Therefore the amount of annual depreciation by the straight-line method is $18,800.

Learn more about annual depreciation here:brainly.com/question/16448059

brainly.com/question/24213593

#SPJ1

3 0
1 year ago
The following transactions were made by Ruby Inc. last year:
Juliette [100K]

Answer:

OPtion (C) is correct.

Explanation:

Given that,

Issuance of common stock = $100,000

Dividends paid to the company's stockholders = $2,000

Depreciation expense = $6,000

Repayment of principal on bonds = $40,000

Proceeds from the sale of the company's used equipment = $39,000

Purchase of land = $230,000

Cash flow from financing activities:

= Issuance of common stock - Dividends paid to the common stockholders - Repayment of principal on the company's own bonds

=  $100,000 - $2,000 - $40,000

= $58,000

Therefore, the net cash inflow from financing activities is $58,000.

8 0
3 years ago
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