Use the CoCo Roofers Inc. data to compute the following (amounts in millions): a. The rate of
Question:
a. The rate of inventory turnover for 2014.
b. Days' sales in average receivables during 2014. All sales are made on account. Round dollar amounts to three decimal places.
Step by Step Answer:
a Inventory turnover Cost of goods sold 424 Average ...View the full answer
Accounting
ISBN: 978-0132690089
9th Canadian Edition volume 2
Authors: Charles T. Horngren, Walter T. Harrison Jr., Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
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
-
Use the financial statements of CoCo Roofers Inc., plus the following item (in millions): Number of common shares outstanding ..................... 0.8 1. Compute earnings per share (EPS) for CoCo...
-
For each of the following ratios, indicate with a check mark if a higher result is considered "good." ____ Current ratio ____ Inventory turnover ____ Return on total assets ____ Book value per common...
-
Use the financial statements of CoCo Roofers Inc. 1. Compute these profitability measures for 2014: a. Rate of return on net sales. b. Rate of return on total assets. Interest expense for 2014 was...
-
What is the wavelength of light if its frequency is 1.009 106 Hz?
-
Bienstar Company has 15 clerks that work in its accounts payable department. A study revealed the following activities and the relative time demanded by each activity: Percentage of Activities...
-
The current organization structure of Blue Sky Company, a manufacturer of small sailboats, is presented below. a. What operational problems (for example. inefficiency, errors, fraud) do you think...
-
Do production-operations erhployees use appropriate operations planning and controlling tools and techniques?
-
A production process is checked periodically by a quality control inspector. The inspector selects simple random samples of 30 finished products and computes the sample mean product weights x. If...
-
Why is the bottom line not necessarily a good predictor of the financial viability of a business?
-
1. Would a lab experiment or a field experiment be more valid in determining whether Tooheys could cause a normal beer consumer to become intoxicated? Explain. 2. Describe an alternate research...
-
Use the Co Co Roofers Inc. balance sheet data given on the previous page. 1. Compute the company's current ratio at December 31, 2014 and 2013. 2. Did Co Co Roofers Inc.'s current ratio value...
-
Use the financial statements of CoCo Roofers Inc. 1. Compute the debt ratio at December 31, 2014. 2. Is CoCo Roofers Inc.'s ability to pay its liabilities strong or weak? Explain your reasoning.
-
Identify the following aldoses, and tell whether each is a D or Lsugar: (a) (b)
-
7. Chicago Corp. obtained the following information from the Raw Materials Inventory account and purchasing records for the first quarter of the current year: Beginning Raw Materials Ending Raw...
-
Suppose that i t =6% (n=1), and that future short term interest rates (n=1) for the next 3 years (starting next year) are expected to be: 4%, 2%, 2%. Suppose that the liquidity premium is zero for...
-
Mechanical Vibrations HW Use the modal analysis and numerical integration to compute and plot the time response of the system, which has the equations of motion [8 0 01 (1) 48 -12 01(x1 0 0 8 02-12...
-
Submit excel file with graph and exchange rate analysis. FOREIGN EXCHANGE RATESTHE YEN FOR DOLLARS. The Federal Reserve System Web site, www.federalreserve.gov/releases/H10/hist , provides historical...
-
Part 1: There are many types of communication styles used in the workplace. Choose what you think is your leadership style: north, south, east, or west. Click The Leadership Compass Self-Assessment...
-
What is the difference between a data mart and a data warehouse?
-
Citing a scientific article, explain in your own words, how DNA fingerprinting has been used in forensic science to solve crimes and why it may not always be accurate or effective.
-
(Debtor/Creditor Entries for Continuation of Troubled Debt) Daniel Perkins is the sole shareholder of Perkins Inc., which is currently under protection of the U.S. bankruptcy court. As a debtor in...
-
(Restructure of Note under Different Circumstances) Halvor Corporation is having financial difficulty and therefore has asked Frontenac National Bank to restructure its $5 million note outstanding....
-
(Restructure of Note under Different Circumstances) Halvor Corporation is having financial difficulty and therefore has asked Frontenac National Bank to restructure its $5 million note outstanding....
-
Clayton received a $140,000 distribution from his 401(k) account this year. Assuming Clayton's marginal tax rate is 25 percent, what is the total amount of tax and penalty Shauna will be required to...
-
Mass LLp developed software that helps farmers to plow their fiels in a mannyue sthat precvents erosion and maimizes the effoctiveness of irrigation. Suny dale paid a licesnsing fee of $23000 for a...
-
Average Rate of Return The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $40,000 $50,000 Useful life...
Study smarter with the SolutionInn App