Question
5. Inventory Ratio Calculations McMahan, LTD. provided the following data for 2008 and 2009: Inventory December 31, 2007 $178,000 December 31, 2008 187,000 December 31,
5. Inventory Ratio Calculations McMahan, LTD. provided the following data for 2008 and 2009:
| Inventory |
|
|---|---|
| December 31, 2007 | $178,000 |
| December 31, 2008 | 187,000 |
| December 31, 2009 | 194,000 |
| Cost of goods sold |
|
| 2008 | $545,000 |
| 2009 | 590,000 |
| Gross margin |
|
| 2008 | $253,000 |
| 2009 | 288,000 |
Do not round until your final answers. Round all calculations to two decimal places. (a) Calculate the inventory turnover ratio for 2008 and 2009. 2008
2009
(b) Calculate the gross margin return on inventory investment for 2008 and 2009. 2008
2009
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Annual Independent Audits And Reporting Requirements US Federal Deposit Insurance Corporation Regulation FDIC
Authors: The Law Library
2018 Edition
1727250419, 978-1727250411
