Question
Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products,
Inventory Turnover
The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products:
| Tomato | Happy Times | |||
| Cost of merchandise sold | $3,990,000 | $378,000 | ||
| Inventory, end of year | 87,000 | 113,000 | ||
| Inventory, beginning of the year | 53,000 | 139,000 | ||
a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place.
| Tomato | fill in the blank 1 |
| Happy Times | fill in the blank 2 |
b. Would you expect Happy Times inventory turnover to be higher or lower than Tomatos?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
ISE Computer Accounting With Quickbooks Online
Authors: Donna Kay
2nd Edition
1260590933, 9781260590937
