40. A trader carries an average inventory of Rs. 40,000. His inventory turnover ratio is 8 times. If he sells goods at a profit of 20% on Revenue from operations, find out the gross profit.
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Q: During September, Aparna had sales of 148,000, which made a gross profit of 40,000. Purchases…
A: Solution.. Sales = Rs148,000 Gross profit = Rs40,000 Purchase = Rs100,000 Opening inventory =…
Q: The ABC Boutique had the following information at June 30, 20X1: Purchases, P180,000…
A: Inventory: The inventory is an asset to the business. The asset is a benefit or resource that has a…
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A: inventory conversion period can be calculated by dividing 365 by inventory turnover ratio.
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A: Cost of goods sold (COGS) is calculated as follows: COGS = (Opening Inventory + Purchases) - Closing…
40. A trader carries an average inventory of Rs. 40,000. His inventory turnover ratio is 8 times. If he sells goods at a profit of 20% on Revenue from operations, find out the gross profit.
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- Wayne's Wells has sales for the year of P48,900 and an average inventory 21 of P8,800. The cost of goods sold id equal to 60 percent of sales and the profit margin is five percent. How many days on the average does it take the firm to sell an inventory item?Steel Scrap Trader sells its product at a Gross Margin of 25% on Sales. Its Annual Sales are estimated to be Rs 360 Million. The Inventory turnover ratio for the business is 4 times whereas the receivable turnover ratio is 3 times. Using this information, estimate the amount of inventory in hand and trade receivable outstanding at the end of the year.?A company has total annual sales (all credit) of Rs.400,000 and a gross profit margin of 20 percent. Its current assets are Rs.80,000; current liabilities, Rs.60,000; inventories, Rs.30,000; and cash, Rs.10,000. a. How much average inventory should be carried if management wants the inventory turnover to be 4? b. How rapidly (in how many days) must accounts receivable be collected if management wants to have an average of Rs.50,000 invested in receivables? (Assume a 360-day year.)
- A company has total annual sales (all credit) of $400,000 and a gross profit margin of 20 percent. Its current assets are $80,000; current liabilities, $60,000; inventories, $30,000; and cash, $10,000. a. How much average inventory should be carried if management wants the inventory turnover to be 4? b. How rapidly (in how many days) must accounts receivable be collected if management wants to have an average of $50,000 invested in receivables? (Assume a 360-day year.)A company has total annual sales (all credit) of $400,000 and a gross profit margin of 20 percent. Its current assets are $80,000; current liabilities, $60,000; inventories, $30,000; and cash, $10,000. a. How much average inventory should be carried if management wants the inventory turnover to be 4? How rapidly (in how many days) must accounts receivable be collected if management wants to have an average of $50,000 invested in receivables? (Assume a 360-day year.)Wall Mart Pictures and Decor Company has a net profit margin of 10% and its inventory turnover is 9. What is its annual cost of sales? You also know that Wall Mart’s average inventory is $96,700, and its annual sales are $1,000,000. a. $870,000 b. $870,300 c. $790,000 d. $850,000
- : A newsvendor purchases units for $10 and sells each one for $18. Inventoryis salvaged for $6. He orders 45,000 units and expected sales are 35,000. What is hisexpected profit?Assume a firm's inventory level of $11,500 represents 33 days of sales. What is the annual cost of goods sold? and what is the inventory turnover ratio?If Happy Corporation has cost of goods sold of P300,000, sales of P600,000, and inventory of P30,000, then the inventory turnover is _________ and the average age of inventory is _________. (Assume a 360-day year) 20; 18 c 10; 20 10; 36 d. 20; 36
- Assume that gross profit averages 35% for BITCO. If net sales are $1,500,000, beginning inventory is $200,000, and purchases are $1,000,000 What is BITCO's estimated ending inventory? $175,000 $200,000 $225,000 $250,000 $275,000 Assume that gross profit averages 40% for RAMCO. If sales are $1,600,000 and sales returns are $100,000, beginning inventory is $200,000, and purchases are $1,000,000 What is RAMCO's estimated Cost of Goods Sold? Group of answer choices $900,000 $300,000 $600,000 $640,000 $960,000A company has an average inventory on hand of P100,000 and the days in inventory are 73 days. What is the cost of goods sold? * Choices: P3,650,000 P1,000,000 P500,000 P7,300,000A retailer has annual sales of $500,000 and an average finished-goods inventory of$15,000. If the retailer sells each unit for an average of $25 and purchases the units for$15, what is its annual inventory turnover?
