Steel Scrap Trader sells its product at a gross margin of 25% on sales. Its annual sales
Question:
Steel Scrap Trader sells its product at a gross margin of 25% on sales. Its annual sales are estimated to be ₹ 360 million. The inventory turnover ratio for the business is 4 times whereas the receivable turnover ratio is 3 times. Using this information, estimate the amount of inventory in hand and trade receivable outstanding at the end of the year.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 25% (4 reviews)
To estimate the inventory and trade receivables well need to use the given gross margin sales figure...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Timbuk2 Inc. manufactures over 100,000 different versions of messenger bags. Suppose Timbuk2 implements an order-up-to model to manage its inventory of a particular plastic buckle. Timbuk2 places an...
-
You have recently been appointed as the accountant of CHIPPIE CHIP, a registered VAT vendor that sells potato chips to various entities across the Western Cape. The business was started 11 months...
-
1.Which of the following below is NOT an element of internal control? a. risk assesment b. monitoring c. information and communication d. behavior analysis ANSWER:D 2. Which of the following below is...
-
Understanding the history and background of your company gives you valuable insights as to what to do and what not to do going forward. A brief written summary of the background and history of the...
-
Cool Spring Company produces premium bottled water. In the second department, the Bottling Department, conversion costs are incurred evenly throughout the bottling process, but packaging materials...
-
Consider the system in state variable form x = Ax + Bu y = Cx + Du with (a) Compute the transfer function G(s) = Y(s)/U(s). (b) Determine the poles and zeros of the system. (c) If possible, represent...
-
10 horses In horse racing, a trifecta bet is one where the player tries to predict the top three finishers in order. In the following exercises, find the probability of choosing a winning trifecta...
-
Create a time-phased resource-loading table for this project, identifying the activity early start and late finish points. Consider a project with the following information: Activitv Duration...
-
withdrawals 3. Insurance expense QS 4-2 Completing a work sheet LO1 6. Depreciation expense, equipment Enter the following unadjusted trial balance and adjustment information onto a work sheet....
-
High current ratio may also indicate lower efficiency in assets utilization. Do you agree?
-
Set up in 1954, Bharat Electronics Limited (BEL) is Indias foremost defense electronics company, a Navratna PSU under the Ministry of Defence. PQR is a multi-products, multi-technology, multi-Unit...
-
The Wide World of Fluids article titled "This water jet is a blast,". By what percent is the volume of water decreased if its pressure is increased to an equivalent to 3000 atmospheres \((44,100...
-
Webb company sells flags with team logos. Webb has fixed costs of \($639,600\) per year plus variable costs of \($4.20\) per flag. Each flag sells for $12.00. Requirements 1. Use the income statement...
-
Which of the following is not normally reported as part of the total manufacturing inventory cost? a. work-in-process b. finished goods c. property, plant, and equipment d. raw materials
-
Goodwill should be recorded in the balance sheet as an intangible asset only when a. it is sold to another company. b. it is acquired through the purchase of another business. c. a company reports...
-
Which of the following events appears in the cash flows from the investing activities section of the statement of cash flows? a. Cash received from customers b. Cash received from the issuance of...
-
Which of the following is not disclosed in a statement of cash flows? a. A transfer of cash to a cash equivalent investment b. The amount of cash at year-end c. Cash outflows from investing...
-
Some management trainees across several branches of an electronics store were rated by their customers, and by their bosses. Comment on the correlation between the two sets of ratings. The data are...
-
The polar coordinates of a point are given. Find the rectangular coordinates of the point. (-1, - /3)
-
How did Crocs? new systems improve operations and management decision-making?
-
What influence does the global business environment have on Crocs and how does that affect its choice of systems?
-
Should preparation for a career in the nonprofit sector emphasize management skills or a broader understanding of civil society and the role of nonprofit organizations?
-
You should be able to arrive at the audited balance by referring to the balance sheet and the adjustments, if any, that you may be able to identify based on available findings and information. If...
-
me now ROI and Investment Decisions Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Year 1 Year 2 Sales $35,200,000...
-
Question 3 Conversion costs include: I. Depreciation of the production facility II. Direct labor III. Indirect labor IV. Indirect materials A. I only OB. I, II, and III OC. I, III and IV O D. All of...
Study smarter with the SolutionInn App