Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory management system at the beginning of 2012. Shown below are data from the company's accounting records as reported out by the new system:   2012 2013 Sales Revenue $9,000,000 $11,000,000 Cost of Goods Sold 6,000,000 6,900,000 Beginning Inventory 800,000 830,000 Ending Inventory 830,000 800,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2012 and 2013. Round your answer to two decimal points

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A: The cost to retail percentage is a comparison of the cost of ending inventory and the retail value…

Q: Inventory Turnover and Days' Sales in Inventory The Southern Company installed a new inventory…

A: The inventory turnover ratio indicates the efficiency of the management to sell out its inventory…

Q: Inventory Analysis The following data were extracted from the income statement of Shriver Inc.:…

A: Inventory turnover is the number of times inventory is sold and replaced back in a time period.…

Q: The following data were extracted from the income statement of Keever Inc.:   Current Year Previous…

A: Inventory turnover ratio measures the number of times a company has sold its inventory. The ratio…

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A: The prior period error is the error that is related to previous year and it find in current year.…

Q: ABC Company's accounting records indicated the following information for 2020: Inventory, January 1…

A: Inventory is the stock of raw materials or finished goods held by a firm at a point of time.…

Q: Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory  = (Beginning…

Q: Ine Toirowing inormation appears in Pety Company s recoras for ue year ended December 31: Inventory,…

A: Calculate the estimated ending inventory:

Q: Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December…

A: Inventory Turnover Ratio represents the effective management of inventory by the company. It…

Q: he Dormer Company uses the gross profit

A: 1. Calculation of cost of goods sold Sales = Cost of goods sold + Mark up(%) Mark up (%) = 50% of…

Q: Santanina Company’s accounting records indicated the following for 2021: Inventory, January 1…

A: Gross Profit:

Q: The Northern Company installed a new inventory management system at the beginning of Year 1. Shown…

A: Inventory turnover = cost of goods sold / average inventory  Days sales in inventory = ending…

Q: (Preparation of Operating Activities Section—Indirect Method, Periodic Inventory) The income…

A: Cash flow from operating activities:   This section of cash flow statement provides information…

Q: (Inventory Errors) At December 31, 2016, Stacy McGill Corporation reported current assets of…

A:

Q: The following data were extracted from the income statement of Brecca Systems Inc.:   Current Year…

A: Formula: Inventory turnover = Cost of goods sold / Average inventory.

Q: The following information is available for Everett Company at December 31, 2015: beginning inventory…

A: We have the following information: Beginning Inventory: $80,000 Ending Inventory: $120,000 Cost of…

Q: Inventory Analysis A company reports the following: Cost of goods sold $381,425 Average inventory…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: $12,500 Purchases 25,000 Sales during January 20,800 The estimated inventory at January 31, 2004, is…

A: The right option is c . $21,500

Q: Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory…

A: Inventory turnover ratio of the company measures how many times inventory sold in a particular year.…

Q: Inventory turnover and number of days' sales in inventory Financial statement data for years ending…

A: Lets understand the basics. Inventory turnover ratio indicates how many time inventory turns into…

Q: Use the following information for Problems 32 and 33.Tristan, Inc., uses the LIFO cost-flow…

A: Total goods available for sale = Beginning inventory + Purchases = 2,000 units + 8,000 units =…

Q: Inventory Analysis The following data were extracted from the income statement of Keever Inc.:…

A:

Q: Qtso Company reported during the current year the following: P 500,000 2,500,000 3,200,000 A…

A: The Cost of Goods sold is the Cost of producing the inventory by the firm. The Ending inventory is…

Q: Inventory Analysis The following data were extracted from the income statement of Keever Inc.:…

A: Ratio analysis is a method of measuring the organization's financial position with different kinds…

Q: Princeton Corp. reported the following amounts on their financial statements for Year 1, Year 2, and…

A: Overstated: This term shall mean that the account balance of a particular item is recorded at a…

Q: he accounting records of DUB Co. showed these data for 2020: Inventory, January 1 P500,000 Purchases…

A: For calculating closing stock we need to prepare trading account . Profit is charged on sales as…

Q: Inventory Estimation - Gross Profit Rate Method The following information appears in Jasper…

A: Opening Stock + purchase +direct expenses+  Gross profit =  Sales + closing

Q: Inventory turnover and number of days’ sales in inventory Financial statement data for years ending…

A: Inventory turnover = Cost of merchandise soldAverage inventory   Given information:

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A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: The Southern Company installed a new inventory management system at the beginning of Year 1. Shown…

A: Inventory Turnover=Cost of goods soldAverage value of Inventory Average Inventory= (Beginning…

Q: Preparation of Operating Activities Section—Indirect Method, Periodic Inventory) The income…

A: There are 2 methods to calculate cash flow from operating activities:- Direct method; Indirect…

Q: A lquist Company uses the retail method to estimate its ending inventory. Selected information about…

A: 1. Compute estimated ending inventory and cost of goods sold using the conventional retail method as…

Q: Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory…

A: The ratio analysis is done to analyse the financial statement of the business with different types…

Q: Inventory Turnover and Days Sales in Inventory The Eastern Corporation installed a new inventory…

A: Inventory Turnover -  Inventory Turnover defines the number of times inventory is sold or utilized…

Q: A company that started trading on 1 January 2011 without any opening inventory sold 20,000 items on…

A: Gross Profit = Sales - Cost of goods sold Total number of units available for sale = 12000 + 9000 +…

Q: Inventory Turnover and Days' Sales in Inventory The Southern Company installed a new inventory…

A: Calculate the average inventory for the year 2015 and 2016:

Q: The year 2 average days inventory outstanding is:

A: Days inventory outstanding = (Average Inventory / Cost of Sales) * 365

Q: Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato…

A: Inventory Turnover Ratio = Cost of Merchandise Sold/Average Inventory  Inventory turnover ratio…

Q: On December 31, 2010, what is the estimated cost of missing inventory?

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: Inventory turnover and number of days' sales in inventory Financial statement data for years ending…

A: Ratio Analysis - Ratio analysis is the technique use to compare two financial statements. It helps…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.