Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bell Companies is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): 2012 2018 Not Sales

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Bell Companies is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): 2012 2018 Not Sales Revenue $ 4,500 $ 3,960 Cont of Goods Sold 3,760 3,300 Average Inventory 450 400 Required: 1-a. Calculate the inventory turnover ratio for 2018 and 2017. 1-b. Calculate the average days to sell Inventory for 2018 and 2017, 2. Did inventory turnover at Bell improve or decline in 2018? 3. Calculate the 2018 gross profit percentage. 4. The main competitor for Bellis Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory turnover was 4.2 and its gross profit percentage was 4.8 percent. Why was Arctic Cat more likely than Bell to require a write-down for LCM/NRV? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req2 Req3 Req 4 Calculate the inventory turnover ratio for 2018 and 2017. (Round your answers to 1 decimal place.) Times per Year 2018 2017 Inventory Turnover Ratio e Regta Reg 1B > Complete this question by entering your answers in the tabs below. Reg 3 Req IA Reg 1B Reg 2 Reg 4 Calculate the average days to sell inventory for 2018 and 2017. (Use 365 days in a year. Use rounded "Inventory Turnover Ratio" and round your answers to 1 decimal place.) Days 2018 2017 Average Days to Sell Inventory Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Reg 3 Reg 4 The main competitor for Bell is Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory turnover was 4.2 and its gross profit percentage was 4.8 percent. Why was Arctic Cat more likely than Bell to require a write- down for LCM/NRV? (Select all that apply.) Arctic Cat had a higher number of days to sell than Bell. Arctic Cat had a lower gross profit percentage than Bell. Arctic Cat had a greater number of inventory turns than Bell

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Blueprint For Lean Audit Lead Your Company To Higher Performance Levels

Authors: Maurice Washpun

1st Edition

B09R3DSLFF, 979-8408643707

More Books

Students also viewed these Accounting questions