Which of these would cause the inventory turnover ratio to increase the most? (a) Increasing the amount

Question:

Which of these would cause the inventory turnover ratio to increase the most?

(a) Increasing the amount of inventory on hand.

(b) Keeping the amount of inventory on hand constant but increasing sales.

(c) Keeping the amount of inventory on hand constant but decreasing sales.

(d) Decreasing the amount of inventory on hand and increasing sales.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

See More Books

Question Posted: Feb 11, 2024 03:00 AM

See More Questions

What distinguishes a real-time operating system from a general-purpose operating system? Discuss the use cases for RTOS and the challenges in meeting real-time requirements.
There are three critical factors in many software design/ development programs and projects. The scope, schedule, and budget combined affect the quality of work products. Explain in your own words...
Lee dreams of opening an Asian inspired fusion caf in Croydon. He is looking to take over an existing caf that does not need any refurbishments from his side. He is lucky to find a recently closed...
Law Management Services began business on January 1, 2012, with a capital investment of $120,000. The company manages condominiums for owners (Service Revenue) and rents space in its own office...
In emerging markets there are supporters and critics of private ownership and supporters and critics of state ownership. Which do you think is appropriate and why?
Two characteristics of creative people are that they have relevant experience and are persistent in their quest. Does this mean that people with the most experience and the highest need for...
What is a drum resource? Why is the concept important to understand to better control resource requirements for project portfolios?
For each of the following accounts, indicate the effect of a debit or a credit on the account and the normal balance. (a) Accounts Payable. (b) Advertising Expense. (c) Service Revenue. (d) Accounts...
QUESTION 33 Jonesy Used Cars offers a one-year warranty from the date of sale on all cars it sells. From historic data, Bill Jones estimates that, on average, each car will require the company to...
Carlos Company had beginning inventory of $80,000, ending inventory of $110,000, cost of goods sold of $285,000, and sales of $475,000. Carloss days in inventory is: (a) 73 days. (b) 121.7 days. (c)...
Harold Company overstated its inventory by $15,000 at December 31, 2013. It did not correct the error in 2013 or 2014. As a result, Harolds stockholders equity was: (a) overstated at December 31,...
The detection point in Problem 4 is moved so that it is 1.50000 mm from one source and 1.50150 mm from the other. If the two waves interfere destructively, what is a possible value for the...
The following post-closing trial balance was drawn from the accounts of Spruce Timber Co. as of December 31, 2011. Transactions for 2012 1. Acquired an additional $\$ 10,000$ cash from the issue of...
Bankers Trust (BT) was one of the most powerful and profitable banks in the world in the early 1990s. Under the stewardship of chairman Charles Sanford Jr., it had transformed itself from a staid...
Hammond Inc. experienced the following transactions for 2011, its first year of operations: 1. Issued common stock for $\$ 80,000$ cash. CHECK FIGURES b. Net Income: $\$ 62,520$ Total Assets:...
Following are the current prices and last years prices of a gallon of regular gas at a sample of 14 gas stations. Can you conclude that the median price is different now from what it was a year ago?...
A sample of nine men participated in a regular exercise program at a local gym. They were weighed both before and after the program. The results were as follows. Can you conclude that the median...
It is possible to find many Web sites that provide demographic information. Access several of these sites and see what they offer. Do the sites differ in the types of demographic information they...
Below is a sample of the data in the file NFLAttendance which contains the 32 teams in the National Football League, their conference affiliation, their division, and their average home attendance....
The following data were taken from the financial statements of Hermes Inc. for December 31, 2012 and 2011: The income before income tax was $891,000 and $787,500 for the years 2012 and 2011,...
Hasbro and Mattel, Inc., are the two largest toy companies in North America. Condensed liabilities and stockholders' equity from a recent balance sheet are shown for each company as follows (in...
Recent balance sheet information for two companies in the food industry, H.J. Heinz Company and the Hershey Company, is as follows (in thousands of dollars): a. Determine the ratio of liabilities to...
explain the concept of Time Value of Money and provide and example. In addition to your discussion, please explain the differences between Stocks and Bonds
Wildhorse Inc. has just paid a dividend of $3.80. An analyst forecasts annual dividend growth of 9 percent for the next five years; then dividends will decrease by 1 percent per year in perpetuity....
Jenny wanted to donate to her alma mater to set up a fund for student scholarships. If she would like to fund an annual scholarship in the amount of $6,000 and her donation can earn 5% interest per...

Which of these would cause the inventory turnover ratio to increase the most? (a) Increasing the amount

Question:

Step by Step Answer:

Financial And Managerial Accounting

Students also viewed these Business questions