Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $120,000 480,000 350,000 360,000 2,000,000 500,000 3,000,000 Beach Sweets $120,000

image text in transcribed
image text in transcribed
Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $120,000 480,000 350,000 360,000 2,000,000 500,000 3,000,000 Beach Sweets $120,000 480,000 300,000 360,000 2,050,000 500,000 3,000,000 Required a-1. Compute the gross margin percentage for each company. a-2. Identify the company that appears to be charging the higher prices in relation to its cost. b-1. For each company, compute the inventory turnover ratio and the average days to sell inventory. b-2. Identify the company that appears to be incurring the higher financing cost. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required Ai Required A2 Required B1 Required B2 Compute the gross margin percentage for each company. (Round your answers to 1 decimal place.) Boardwalk Taffy Beach Sweets Gross Margin 31.9 % 14.2 % Cash Accounts receivable Merchandise inventory Accounts payable Cost of goods sold Building Sales Boardwalk Taffy $120,000 480,000 350,000 360,000 2,000,000 500,000 3,000,000 Beach Sweets $120,000 480,000 300,000 360,000 2,050,000 500,000 3,000,000 Required a-1. Compute the gross margin percentage for each company. a-2. Identify the company that appears to be charging the higher prices in relation to its cost. b-1. For each company, compute the inventory turnover ratio and the average days to sell inventory. b-2. Identify the company that appears to be incurring the higher financing cost. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B1 Required B2 For each company, compute the inventory turnover ratio and the average days to sell inventory. (Use 365 days in a year. Round your "inventory Turnover Ratios" to 1 decimal place and all other answers to the nearest whole number.) Inventory Average Days Boardwalk Taffy days 7.5 49 days Turnover Ratios 4.9 X times 74 Beach Sweets times

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

Accounting

Authors: John Hoggett, John Medlin, Lew Edwards, Matthew Tilling, Evelyn Hoggett Hogg

6th Edition

1742466354, 978-1742466354

Students also viewed these Accounting questions

Question

Simplify the expression without using a calculator. log, b = Olog_

Answered: 1 week ago

Question

6.7 Discuss strategies for recruiting a more diverse workforce.

Answered: 1 week ago