Following are key figures (in millions of Korean won) for Samsung (Samsung.com), which is a leading manufacturer
Question:
Following are key figures (in millions of Korean won) for Samsung (Samsung.com), which is a leading manufacturer of consumer electronics products.
Required
1. Use these data and those from BTN 6-2 to compute (a) inventory turnover and (b) days' sales in inventory for the most recent two years shown for Samsung, Apple, and Microsoft.
2. Comment on and interpret your findings from part 1.
In millions One Year Prior Current Year \ 18,811,794 123,482,118 Two Years Prior \ 19,134,868 37,696,309 \ 17,317,504 128,278,800 Cost of sales
Step by Step Answer:
1 Inventory turnover Cost of sales Average inventory Current year X Samsung in millions of K...View the full answer
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
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 Cost Accounting questions
-
Following are key figures (Euro in thousands) for Piaggio (www.piaggio.com), which is a leading manufacturer of two-, three-and four-wheel vehicles, and is Europes leading manufacturer of motorcycles...
-
Following are key figures (in millions of Korean won) for Samsung (www.Samsung.com), which is a leading manufacturer of consumer electronics products. Required 1. Use these data and those from BTN...
-
Use Samsungs December 31, 2013, financial statements, in Appendix A near the end of the book, to answer the following: a. Identify the amounts (in millions of Korean won) of its 2013 (1) Assets, (2)...
-
4. What are the three categories of transactions in the balance of payments? Give an example of each. 5. Economists sometimes say that the current exchange rate system is a dirty float system. What...
-
How is an organization like an iceberg? Use the iceberg metaphor to describe the field of organizational behavior.
-
On March 1, 2003, a company paid a $16,200 premium on a 36-month insurance policy for cover age beginning on that date. Refer to that policy and fdl in the blanks in the following table: Balance...
-
On January 1, 2002, Elora Karim Inc. changed from the straight-line method of depreciation to the declining-balance method. The cumulative effect of the change was to increase the prior years'...
-
During 2012, Cheng Book Store paid $483,000 for land and built a store in Georgetown. Prior to construction, the city of Georgetown charged Cheng $1,300 for a building permit, which Cheng paid. Cheng...
-
Dat M. Ly Limited, follows IFRS, is in the process of preparing its financial statements for its second year of operations ending December 31, 2020. Pertinent information follows: 1. Accounting...
-
This problem is based on the JA Tires data that was first introduced in problem 6-35. If you have not already accessed the data, it can be downloaded from the textbook website. As part of risk...
-
Access the September 26, 2015, 10-K report for Apple, Inc. (ticker: AAPL), filed on October 28, 2015, from the EDGAR filings at SEC.gov. Required 1. What products are manufactured by Apple? 2. What...
-
Locate "Note 11," which reports Apple's segments from its September 26, 2015, annual report on its website (Apple.com). Identify its segments and list the net sales for each.
-
Differentiate the function. g(x) = ln(xx 2 1)
-
duff owes relatives $13,000 for college loans. find the required quarterly payment into a sinking fund if duff pays off the loan in 3 years and the interest rate is 8% per year compounded quarterly
-
You have summer range in south Texas. Condition of the range is fair; however, water is well distributed. You will graze this range for 4 months (June through September). Production of key forage...
-
During the year ended December 31, 2020, Seahawk Ltd. received a government grant of $120,000 for hiring and training costs for the years ending December 31, 2020, 2021, and 2022. The grant...
-
The company currently has outstanding a bond with a 5.5 percent coupon rate and another bond with a 3.5 percent coupon rate. The firm has been informed by its investment banker that bonds of equal...
-
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,200 units at $225 each) Variable...
-
In 2012, Elbert Corporation had net cash provided by operating activities of $531,000; net cash used by investing activities of $963,000; and net cash provided by financing activities of $585,000. At...
-
On January 1, 2018, Khalid Ltd., which follows IAS 17, entered into an eight-year lease agreement for three dryers. Annual lease payments for the equipment are $28,500 at the beginning of each lease...
-
Hayek Bikes prepares the income statement under variable costing for its managerial reports, and it prepares the income statement under absorption costing for external reporting. For its first month...
-
Oak Mart, a producer of solid oak tables, reports the following data from its second year of business. 1. Prepare the current year income statement for the company using variable costing. 2. Prepare...
-
Cool Sky reports the following costing data on its product for its first year of operations. Year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing...
-
1. What happens to the Sec. 199A deduction if a qualified trade or business generates a loss? a. None of the choices presented are correct. b. If the net amount of the income, gain, deduction and...
-
On January 26, Bella Co. borrowed cash from Conrad Bank by issuing a 60-day note with a face amount of $76,800. Assume a 360-day year. a. Determine the proceeds of the note, assuming the note carries...
-
Goodman, Pinkman, and White formed a partnership on January 1, 2020, and made capital contributions of $125,000 (Goodman), $175,000 (Pinkman), and $250,000 (White), respectively. With respect to the...
Study smarter with the SolutionInn App