Roselli's Machine Manufacturing Co reported its sales as R120 000, a gross profit of R50 000 and current liabilities of R25 000. If the current ratio is 2,5 and the quick ratio is 1,75, what is the inventory turnover for the company?

Roselli's Machine Manufacturing Co reported its sales as R120 000, a gross profit of R50 000 and current liabilities of R25 000. If the current ratio is 2,5 and the quick ratio is 1,75, what is the inventory turnover for the company?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

See similar textbooks

Related questions

Q: Liven the following data, calculate the cost of goods sold using the average-cost method. Round…

A: Inventory is one of the current asset in the business. It can be raw materials inventory, work in…

Q: owing adjusted trial balance at December 31 of Wilson Tra mt Title nts receivable e supplies s…

A: Answer : 1. Income statement : Income statement Trucking revenue $138,000 Less : salaries…

Q: Henrich is a single taxpayer. In 2022, his taxable income is $481,500. What are his income tax and…

A: Taxable income refers to the sum value of money earned by a taxpayer that is subject to a compulsory…

Q: The following data were taken from the comparative balance sheet of Icon Living, Inc., for the years…

A: WORKING CAPITAL Working Capital is Measure Companies Liquidity & Short Term Financial Health.…

Q: Problem 21-3A Break-even analysis; income targeting and strategy C2 A1 P2 Astro Co: sold 20,000…

A: In accounting, the breakeven point is calculated by dividing the fixed costs of production by the…

Q: Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the…

A: Hi student Since there are multiple subparts asked, we will answer only first three subparts.…

Q: Juanita paid $50,000 of interest on a mortgage on her home (loan of $1,000,000 at 5% interest rate…

A: The home mortgage interest deduction enables the homeowners to write off mortgage interest on up to…

Q: Which of the following procedures would most likely help an auditor identify events after the date…

A: Events that occur after the date of the financial statements but before the auditor's report is…

Q: The cashier for Bell Buoy rang up sales totaling $5,108, but had $5,130 to deposit, which journal…

A: A journal entry is a process that records the different types of transactions of a company in the…

Q: Suppose a certain appliance store purchases the following items. Calculate the extended total after…

A: An invoice is a document given to the buyer by the seller to collect payment. It includes the cost…

Q: On January 1, 2017, a machine was purchased for $120,000. The machine has an estimated salvage…

A: Depreciation Expense - Depreciation Expense incurred on the assets of the company. Depreciation…

Q: T/F 1.Sale is a mode that gives rise to a title 2. Nominate which means that it has been given…

A: The benefits of a contract can help provide security and peace of mind to both parties, as well as…

Q: MULTIPLE CHOICE: 1. Which of the following may be considered to be a primary objective of the…

A: Audit evidence is information obtained by auditors during an audit process to support their opinion…

Q: yed in the home for 22 days. Rented it to his favorite brother at a discount for 10 days. Rented it…

A: Answer : Personal use = 22 days personally + 18 (10+8) days rental to relatives + 4 days rental out…

Q: How to advise on the residency status of a clien given a few major case facts. Under Australia…

A: it's important to note that determining an individual's residency status for tax purposes is a…

Q: Massive Corp. is authorized to Issue unlimited $0.80 no-par preferred shares and unlimited no-par…

A: Common shares and preferred shares are two type of shares being offered to public in order to raise…

Q: 22) Hutchcroft Corporation uses the weighted-average method in its process costing. The following…

A: Given: that 6400 units are completed and transferred to next process 100% is to be taken for…

Q: Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based…

A: calculation of unit product cost for each product list are as follows

Q: Oki Products, Ltd., has observed the following processing costs at various levels of activity over…

A: The question is based on the concept of Cost Accounting. Variable cost is the cost that remains same…

Q: following circumstances: Note: Leave no answer blank. Enter zero if applicable. b. Lionel's AGI…

A: Income earned through the year and then adjusted can be called as Adjusted Gross Income (AGI). The…

Q: Yearly Benefit Costs Medical insurance Dental insurance Life insurance AD&D Short-term disability…

A: Yearly Benefits Cost Company Cost Employee Cost (New) (New) Medical Insurance $…

Q: SJM agrees to give Soren Corp a longer time to pay, but Soren Corp must pay interest over the…

A: Given Information: 6 month Note issued on 1st November. Principal Amount - $ 5,000 Interest Rate -…

Q: Christmas Timber, Inc., produces Christmas trees. The trees are produced through a cutting and…

A: Under direct method, inter service department allocation is ignored and service department cost is…

Q: Valley's managers have made the following additional assumptions and estimates: Estimated sales for…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: Determining Cost of Goods Sold For a recent year, Best Buy (BBY) reported sales of $39,528 million.…

A: Gross Profit :— It is the difference between sales and cost of goods sold. Gross profit = Sales —…

Q: Choctaw Co. completed the following transactions in 2016, the first year of operation: 1. Issued…

A: Introduction: A journal entry is a record of a commercial transaction in an organization's…

Q: MULTIPLE CHOICE: 4. Which of the following forms of evidence represents the most competent evidence…

A: the auditor's objective in examining accounts receivable is to form an opinion regarding…

Q: Complete the following table by finding the net price factor, single equivalent discount, trade…

A: Given that list price is = $7800 The trade discount rate is = 15/4/4 Net price factor = 0.85 ×…

Q: QUESTION 2 Identify whether each of the following accounts would be listed in the company's…

A: A trial balance is a statement that contains ledger balances. The sum of debit and credit of the…

Q: ces E6-14 (Algo) Analyzing and Recording Sales and Gross Profit with Sales Returns [LO 6-4, LO 6-6]…

A: GROSS PROFIT MARGIN Gross Profit is the difference between Net Sales or Cost of Goods Sold. Gross…

Q: [The following information applies to the questions displayed below.] Laker Company reported the…

A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method. Using…

Q: ChipChips Inc. manufactures organic snack crackers. Their production process occurs in two phases:…

Q: As of 2017, Buttle Corp. has $10 par, 2% preferred stock 5.200 shares outstanding, and $1 par common…

A: The preference shareholders have the right to receive the dividend before the common shareholders.…

Q: Monney Ofori and Heavenn Obotan qualified as Chartered Accountants in 2017. They have now decided…

A: Monney Ofori and Heavenn Obotan qualified as Chartered Accountants in 2017. They have now decided…

Q: On December 18, 2020, Stephanie Corporation acquired 100 percent of a Swiss company for 4.004…

A: The cumulative translation adjustment (CTA), also known as the foreign currency translation…

Q: thleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k),…

A: The contributions made to 401(K) plan are tax free so on withdrawal you hav to pay taxes. If you…

Q: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin…

A: Lets understand the basics. For calculating cost per unit, we will need to use below formula. Cost…

Q: On August 3, Cinco Construction purchased special- purpose equipment at a cost of $6,900,000. The…

A: Depreciation refers to the decrease in value of an asset over time. It is a term used in accounting…

Q: Your audit disclosed that on December 31, 2021, the accounts receivable control account of Eileen…

A: Trade receivables are those which are to be received by the entity from its customers at a later…

Q: ts Receivable 160 Accumulated Depreciation—Equipment 81 Cash 28 Cash Equivalents 33 Common Stock 280…

A: Answer : 1. Amount Cash $28 Cash equipment $33 Petty cash $10 Cash and cash equipment…

Q: what is the net operating income for the month under variable costing?

A: Variable costing refers to the methodology which allocates only the variable costs to the inventory…

Q: Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based…

A: Activity Rates :— It is the rate used to allocate manufacturing overhead to cost object under…

Q: ternal control consists of the actions taken by people at every level of an organization to achieve…

A: Internal control refers to the policies, procedures, and practices implemented by an organization to…

Q: In addition to the MOH costs, the following DM and DL costs are provided for the three product…

A: Activity baed costing is one of the costing method which is used for allocation of all indirect…

Q: What is the effect of the following business activity on the element indicated? You bought inventory…

A: The correct option with proper explanation are as follows

Q: Honesty Company placed a purchase order to a Singaporean Company on October 9, 2022. The contract…

A: Monetary items like cash debtor creditors loans are translated at either(i) when settled apply the…

Q: Entries for Materials Kingsford Furnishings Company manufactures designer furniture. Kingsford…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Fujita, Inc had 900,000 shares of common stock outstanding on January 1, issued 450,000 shares on…

A: Weighted average outstanding shares are computed by adding outstanding share during the year with…

Q: In your audit of Ledo Plastic Corporation , you noted that the company’s statement of financial…

A: Accounts receivable means those customer accounts to whom business has made credit sales on account…

Q: Hawk, Inc. has a 15% required rate of return. Three divisions of Hawk have proposed three projects…

A: Capital budgeting is a process of deciding the best projects out of the number of projects available…

Question

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Rascal Flats has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company’s COGS are $2,000,000 and its current liabilities are $1,000,000. What is the company’s inventory turnover ratio?
What was Paloma Company's approximate inventory turnover ratio if the beginning inventory was $5,000, and the ending inventory was $2,000, the total sales during the period were $60,000, and the gross profit was $22,000?
ABC Company has average inventory of $45 000, cost of goods soldis $650 000. What is the inventory turnover? What is the inventory period?
Crane Inc. has sales of $4,900,000, a gross profit margin of 24.0 percent, and inventory of $1,000,000. What are the company’s inventory turnover ratio and days’ sales in inventory? (Round inventory turnover ratio to 3 decimal places, e.g. 12.555 and days' sales in inventory to 1 decimal place, e.g. 12.5. Use 365 days for calculation.) Inventory turnover ratio times Days’ sales in inventory days
Nizwa Company had the cost of goods sold of $ 160,000 and inventory balance was $23,000. What is the inventory turnover? Select one: O 8 O 15 O 6.95 O 3.48 Next je ENG
What is the inventory turnover ratio for ABC Corp. if cost of goods sold equals $5,000, current ratio equals 3, quick ratio equals 1.5, and the firm has $1,800 in current assets? A. 2.78 times B. 4.17 times C. 5.56 times D. 8.33 times
The cost of goods sold was computed at P12,250. Total sales for the year were P42,950, of which P31,200 in credit. Lawson’s inventory turnover ratio for the year was Mr. Plengpong, the controller, had gathered the following accounting data regarding Lawson Inc.
If your cost of goods sold for the year was $825,000, with beginning inventory of $240,000 and ending inventory of $260,000, what is the inventory turnover ratio?
The Zone, Inc. has an ROE of 0.10, no debt, and a Total Asset Turnover of 2.8x. What is the Zone's Net Profit Margin? (Answer should be entered to four decimal places; i.e. 0.1350.)
Compute Altoona Company's (a) inventory turnover ratio and (b) number of days' sales in inventory ratio, using the following information. Costs of Goods Sold - $722,000 Beginning Inventory - 53,000 Ending Inventory - 67,000 What is the inventory turnover ratio? What is the number of days' sales in inventory ratio?