Compute Westtown Companys (A) inventory turnover ratio and (B) number of days sales in inventory ratio, using
Question:
Compute Westtown Company’s (A) inventory turnover ratio and (B) number of days’ sales in inventory ratio, using the following information.
Cost of goods sold Beginning inventory Ending inventory $156,000 14,500 17,500
Step by Step Answer:
Inventory turnover ratio cost of goods soldaverage inventory average i...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
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 Business questions
-
Compute Altoona Companys (a) inventory turnover ratio and (b) number of days sales in inventory ratio, using the following information. Cost of goods sold Beginning inventory Ending inventory...
-
Using the following information about McAuliff e Company, decide whether you would want to loan money to thecompany. 2010 2011 2012 $1,295 (2,023) (1,450) 5,300 Net income. Cash provided by lused in)...
-
Using the following information for Gold Star National Bank, calculate that banks ratios of Tier 1 capital-to-risk-weighted assets and total-capital-to-risk-weighted assets. Does the bank have...
-
This is one question with sub parts please solve this question step by step please also write the little explanation to solve the question Consider the following complex numbers: z, = 3+ 3i z2 = 3 +...
-
Fred, a retired accountant, and Jim, a government manager, are 63-year-old identical twins who collect antique pottery. Each has an annual income of $100,000 (Fred's from a pension, Jim's from...
-
1. Suppose that a restaurant launched a new advertising campaign in conjunction with a new menu. After one month they take a random sample of 250 bills (tables) and find an average bill of 73.4. In...
-
2.7
-
Dan Jones is the new CIO of Ricochet Systems, an Internet securities broker. After assessing the e-commerce risks in his company, he determines that passwords are a weak link that needs additional...
-
Explain why newspapers refer to the fact that the published statistics are audited. (6 Marks) 1.2. State whether the fact that the figures are audited means that the audit body is certifying that the...
-
For each lettered space in the following table, determine the appropriate dollar amount: Total Quantity of Fixed Average Output, Cost Fixed Total Variable Variable Cost Total CostMarginal...
-
Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023. Year 2021...
-
Use the following information relating to Clover Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023. Year 2021...
-
What do you mean by amalgamation ? What are the different types of amalgamation ?
-
Evaluation a. Evaluate the effectiveness of social media marketing campaign for instagram, facebook and pintrest ?based on your KPIs for example account reached, content reached, likes, shares,...
-
A study was performed at a university to analyze whether the preference for hamburgers or fried chicken is related to the gender of the student. This table lists the results of the study. At a =...
-
A 20-lb homogeneous box has tipped and is resting against a 40-lb homogeneous box as shown in figure attached. The coefficient of friction between box A and the floor is 0.7, and between box B and...
-
The Taylor series for natural logarithm (with base e) In(1+r) is In(1+2) -(-1)+1 for <1. (a) Write a user-defined function using loop that determines In(1+x) using the above Taylor series. Your...
-
Question 1: [up to 4 pts] Suppose that a = 1, a2 = 2, a3 = = 3, and an = an-3 for all n 4. If an integral with respect to y is used to find the area of R, what should the upper limit of integration...
-
Write each statement as an inequality. x is positive
-
Show, if u(x, y) and v(x, y) are harmonic functions, that u + v must be a harmonic function but that uv need not be a harmonic function. Is e"e" a harmonic function?
-
Stan Bushart works as a customer representative for a large corporation. Stans job entails traveling to meet with customers, and he uses his personal car 100% for business use. In 2017, Stan must...
-
BCD Partnership has, for many years, had a March 31 year-end. The partnerships net income for the fiscal year ended March 31, 2018 is $400,000. Because of its fiscal year, BCD has $100,000 on deposit...
-
Dana manages real estate and is a cash method taxpayer. She changes to the accrual method in 2018. Danas business income for 2018 is $30,000 computed on the accrual method. Her books show the...
-
Caspian Sea Drinks needs to raise $74.00 million by issuing additional shares of stock. If the market estimates CSD will pay a dividend of $2.69 next year, which will grow at 3.45% forever and the...
-
i need help in B and C Integrative Case 5-72 (Algo) Cost Estimation, CVP Analysis, and Decision Making (LO 5-4.5.9) Luke Corporation produces a variety of products, each within their own division....
-
Relate PSA (Public Securities Association) speed to the average life of a MBS. Describe the PSA measure and discuss which MBS would have the greater average life, one with a PSA of 100 or one with a...
Study smarter with the SolutionInn App