The following data were taken from recent annual reports of Dell Inc., a vendor of personal computers
Question:
a. Determine the inventory turnover for Dell and Boeing. Round to one decimal place.
b. Would you expect Boeings inventory turnover to be higher or lower than Dells?Why?
Dell Inc.Boeing Co. (in millions) in millions) Cost of goods sold Inventory, end of year Inventory, beginning of the year $40,190 459 327 $44,675 4,247 5,338
Step by Step Answer:
a Dell 1023 40190 459 327 2 Boeing 93 44675 4247 5338 2 b Lower Much of Boeings ...View the full answer
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Managerial Accounting questions
-
The following data were taken from recent annual reports of Apple Computer, Inc., a manufacturer of personal computers and related products, and American Greetings Corporation, a manufacturer and...
-
The following data were taken from recent annual reports of Southwest Airlines, which operates a low-fare airline service to over 50 cities in the United States: a. Determine the number of times...
-
The following data were taken from recent annual reports of Apple Computer, Inc., a manufacturer of personal computers and related products, and American Greetings Corporation, a manufacturer and...
-
Simplify each expression. Assume that all variables represent nonzero real numbers. (xy-3)-2
-
This assignment deals with the application of a traditional ABC system to the problem of measuring and managing the cost of capacity. As a newly hired accountant for Zen Company, you've been asked to...
-
What is the difference between a job and a position? between a task and a job? LO-1
-
Rose, a minor, bought a new Buick Riviera from Sheehan Buick. Seven months later, while still a minor, he attempted to disaffirm the purchase. Sheehan Buick refused to accept the return of the car or...
-
Scotch whisky increases in value as it ages, at least up to a point. For any period of time, t, the value of a barrel is given by V = 100t 6t2. This function implies that the proportional rate of...
-
solve quickly please Thomas Traders WLL provide you with the following cost items. Analyse the cost description in Column No.1 and classify the cost in the appropriate column by putting "X" mark...
-
The following trial balance was prepared for Tile, Etc., Inc., on December 31, 2016, after the closing entries were posted: Tile, Etc. had the following transactions in 2017: 1. Purchased merchandise...
-
Assume that a company initiated a quick response program. a. What impact would the program have on the inventory balance and cash flow? b. What impact would the program have on cost of goods sold,...
-
The inventories (in millions) of Anheuser-Busch Companies, Inc., were recently reported on its December 31, 2004 and 2003, balance sheets as follows: The cost of goods sold reported on the income...
-
Consider the encased pipe of Problem 4.29, but now allow for the difference between the mean temperature of the fluid, which changes along the pipe length, and that of the pipe. (a) For the...
-
A liquid mixture of 65 mole% n-nonane and 35 mol% n-octane enters a flash unit. In the flash unit, the pressure is reduced to 1 atm and half of the liquid is evaporated. find the temperature in the...
-
To gain a deep understanding of SAPPI LIMITED's industry and competitive environment, answer the following questions before the company can embark on a "new strategy" breakaway. Does this industry...
-
What communication tools can a manager use to construct and deliver constructive and timely feedback to their employees? Discuss the various communication tools (i.e. email, phone, text, social...
-
The production per hour, output per unit time, and the number of operations per hour are all examples of labor standards (David & Davis, 2020). Employees will experience both good and negative...
-
Explain in detail on the following CLO 5 -Evaluate strategic implementation and control principles/improvement strategies for business control, including use of strategic Dashboards and Balance...
-
Was Pettits behavior unprofessional? Was it immoral? Did it show a lack of fitness to teach? Explain how you understand the terms in quotation marks. TEACHING ELEMENTARY SCHOOL CHILDREN with...
-
Reread the discussion leading to the result given in (7). Does the matrix sI - A always have an inverse? Discuss.
-
Write an application that inputs a line of text, tokenizes the line with String method split and outputs the tokens in reverse order. Use space characters as delimiters.
-
As an assistant cost accountant for Spears Industries, you have been assigned to review the activity base for the predetermined factory overhead rate. The president, Jessica Romo, has expressed...
-
In job order cost accounting, the three elements of manufacturing cost are charged directly to job orders. Why is it not necessary to charge manufacturing costs in process cost accounting to job...
-
What are transferred-out materials?
-
What is the duration for the following bond with annual payments? 5.6300 5.7957 4.9894 5.1910 5.3806
-
DOLLAR TREE GROCERY OUTLET Short-Term Liquidity 2021 2022 2021 2022 Current Ratio 1.35 1.51 1.86 1.67 Quick Ratio 0.24 0.15 0.63 0.42 Cash Ratio Cash Conversion Cycle 34.78 45.75 19.41 21.61 Days...
-
A family has a $117,443, 25-year mortgage at 5.4% compounded monthly. (A) Find the monthly payment and the total interest paid. (B) Suppose the family decides to add an extra $100 to its mortgage...
Study smarter with the SolutionInn App