Question
Hello I just want to make sure that these answers are correct. Please let me know if they are wrong. Thank you! Omni, Inc. presents
Hello I just want to make sure that these answers are correct. Please let me know if they are wrong. Thank you!
Omni, Inc. presents the following data for December 31, 2018. (Question #3)
Inventories, beginning of year
$855,500
Inventories, end of year
674,800
Cost of Goods Sold
4,580,000
Net Sales
7,525,600
3. The inventory turnover in days (use average inventory) is:
a.53.8
b.61.0
c.56.1
d. 32.7
e.37.1
Avg. Inventory = Beg. Inv. + Ending Inv. / 2 = $855,500 + $674,800/ 2 = $765,150
Inventory Turnover = COGS/ AVG. Inventories = $4,580,000 / $765,150 = 5.99
Inventory Turnover in days = Avg. Inv./ (COGS / 365) = $765,150 / ($4,580,000/365) = 60.97 or 61
7.Pepsico presents the following data for the year ended December 31, 2018 (millions).
Receivables, net, beginning of year
Receivables, net, end of year
$7,024
7,142
Net Sales
64,661
Cost of Goods Sold
29,381
Allowance for Doubtful Accounts = $129M, Beginning of year and $101M, end of year.
The days' sales in receivables (ACP) using 365 days is:
a.40.1
b.81.3
c.41.1
d.40.9
e. 40.4
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