Broadway Communications reported the following figures in its annual financial statements: Cost of Goods Sold ................................ $
Question:
Cost of Goods Sold ................................ $ 18,400
Beginning Merchandise Inventory ............... 560
Ending Merchandise Inventory ................... 450
Compute the rate of inventory turnover and days' sales in inventory for Broadway Communications. (Round to two decimal places.)
Step by Step Answer:
Inventory turnover is 3644 times and days sales in inventory is 1002 days Calculati...View the full answer
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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 Financial Accounting questions
-
Santa Fe Communications reported the following figures in its annual financial statements: Cost of Goods Sold .............. $ 18,000 Beginning Merchandise Inventory ..........500 Ending Merchandise...
-
Clear Communications reported the following figures in its annual financial statements: Cost of Goods Sold ......... $ 19,000 Beginning Merchandise Inventory ... 600 Ending Merchandise Inventory ......
-
Prepare Carolina Communications multi-step income statement for the year ended July 31, 2015. Carolina Communications reported the following figures from its adjusted trial balance for its first year...
-
The difference between case law and common is which of the following? O Common law creates law and case law interprets existing law. There is no difference. Case law is criminal law and common law is...
-
Figure shows a ring of outer radius R = 13.0 cm, inner radius r = 0.200R, and uniform surface charge density = 6.20pC/m2. With V - 0 at infinity, find the electric potential at point P on the...
-
On December 31 of last year, Target System Companys balance sheet had Accounts Receivable of $298,000 and a credit balance in Allowance for Uncollectible Accounts of $20,300. During the current year,...
-
Russell Company is considering purchasing new equipment for \($450,000\). It is expected that the equipment will produce annual net income of \($15,000\) over its 10-year useful life. Annual...
-
Klutz won a contest sponsored by a radio station, entitling him to play in a twilight golf tournament. He went to the radio station and signed a form releasing the station from any liability...
-
Michael Inc. would like to prepare a summary cash budget for June. The following information is available: The cash balance at June 1 was estimated to be $6,000. June sales, all on account, were...
-
Do you think there is a contradiction between what employers want in employees (agreeable employees) and what employees actually do best (disagreeable employees)? Why or why not? Agreeable people...
-
Fit Gym began January with merchandise inventory of 78 crates of vitamins that cost a total of $4,290. During the month, Fit Gym purchased and sold merchandise on account as follows: Requirements 1....
-
Steel Mill began August with 50 units of iron inventory that cost $35 each. During August, the company completed the following inventory transactions: Requirements 1. Prepare a perpetual inventory...
-
The Marshall and Swift (M&S) equipment cost index started with a base value of 100 in 1926. Determine the average (compound) percentage increase per year between 1926 and 2011 when the index value...
-
4. Two masses of 3 kg and 5 kg collide head-on, the former moving to the right with the speed 5 m/s and the latter moving to the left with the speed 3 m/s. After collision they stick together. What...
-
The following is a summary of an article. This paper examined the interaction between the transformational leadership behaviors of a former and new leader on employees' resistance and support for...
-
Activity 2C Estimated Time 10 Minutes (following the presentation) Objective To provide you with an opportunity to identify how to confirm target audience understand key concepts and ideas, and that...
-
For each brand in the following table, calculate the manufacturer's selling price (MSP), the per unit margin, and the gross margin as a percentage of MSP. MSRP Volume Discount Promotion Unit...
-
Roberto Trucks Inc. purchased a delivery van on January 1, 2022. Assume this was the company's only capital asset and that the company uses the year rule in the year of acquisition and disposal for...
-
For each of the following accounts for a manufacturing company, place a in the column indicating that it is included in selling expenses, general and administrative expenses, or the calculation of...
-
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
-
Relative Furniture Company manufactures and sells oak tables and chairs. Price and cost data for the furniture follow: Relative Furniture has three sales representatives: Abe, Brett, and Corrin. Abe...
-
Refer to Exercise E21-25. The commercial business segment provided services to 200 customers. The residential business segment provided services to 400 customers. Determine the average amount Sherman...
-
What is a business segment? Give some examples.
-
The Foundational 15 [LO6-1, LO6-3, LO6-4, LO6-5, LO6-6, LO6-7, LO6-8] [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format...
-
Direct Materials Purchases Budget FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKick's best-selling lines are the practice ball line...
-
A A- U obe X, x- A Bears Automotive Adjusted Trial Balance December 31, 2020 Account Titles Cash Debit Credit $ 58,000 Accounts receivable 8,000 Supplies Equipment Vehicles Accumulated depreciation...
Study smarter with the SolutionInn App