Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GameWorld Corp. is the world's largest multichannel video game retailer. The company reported the following amounts (in millions) in its annual financial statements at the

image text in transcribed

GameWorld Corp. is the world's largest multichannel video game retailer. The company reported the following amounts (in millions) in its annual financial statements at the end of January. Net Sales Revenue Cost of Goods Sold Beginning Inventory Ending Inventory 2016 $17,900 9,840 2,700 3,100 2015 $17,400 9,440 2,000 2,700 Required: 1. Determine the inventory turnover ratio and average days to sell inventory for 2016 and 2015. TIP: Remember to use costs in both the numerator (CGS) and denominator (average inventory). (Use 365 days in a year. Round your intermediate and final answers to 1 decimal place.) 2016 2015 times per year Inventory Turnover Ratio Days to Sell times per year days days 2. At Ultimate Value, inventory turned over 4.9 times during 2016 (74.5 days to sell). Are the GameWorld Corp. inventory managers more effective or less effective than those at Ultimate Value? More effective Less effective

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

More Books

Students also viewed these Accounting questions

Question

=+Construct a data- and research-driven SWOT analysis

Answered: 1 week ago

Question

=+Who are our customers?

Answered: 1 week ago

Question

=+What are our goals presently?

Answered: 1 week ago