question 4,6,8 only Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate theaverage inventory and inventory turnover for the following. If the actual turnover is less than thepublished rate, calculate the target average inventory necessary to come up to industry standards.Round inventories to the nearest dollar and inventory turnovers to the nearest tenth.Net SalesEndingInventoryPublishedAverageGoods Sold Inventory Inventory InventoryCost ofBeginningTargetTurnoverRateAverageInventory1.$500,000$50,000$70,000$60,0008.310.0$50,000.002.$335,000$48,000$56,000$52,0006.46.0Above3.$1,200,000$443,000$530,000Answer +Answer +3.5Answer +4. $4,570,000$854,000$650,3008.25.$258,400$76,300$43,500Answer +Answer +5.2Answer +6.$540,000$133,250$71,2004.87. $1,329,000$545,800$387,120Answer +Answer +2.6Answer +8.$884,500$224,130$134,9005.9

* Answer 4,6 and 8 is only asked Inventory turnover ratio = Cost of Goods Sold/ Average Inventory…

Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales Cost of Beginning Ending Inventory Published Target Average Goods Sold Inventory Inventory Inventory Turnover Rate Average Inventory 1. $500,000 $50,000 $70,000 $60,000 8.3 10.0 $50,000.00 2. $335,000 $48,000 $56,000 $52,000 6.4 6.0 Above 3. $1,200,000 $443,000 $530,000 Answer + Answer + 3.5 Answer + 4. $4,570,000 $854,000 $650,300 8.2 5. $258,400 $76,300 $43,500 Answer + Answer + 5.2 Answer + 6. $540,000 $133,250 $71,200 4.8 7. $1,329,000 $545,800 $387,120 Answer + Answer + 2.6 Answer + $884 500 $224 130 $134 900 5 9

Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turnover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Round inventories to the nearest dollar and inventory turnovers to the nearest tenth. Net Sales Cost of Beginning Ending Inventory Published Target Average Goods Sold Inventory Inventory Inventory Turnover Rate Average Inventory 1. $500,000 $50,000 $70,000 $60,000 8.3 10.0 $50,000.00 2. $335,000 $48,000 $56,000 $52,000 6.4 6.0 Above 3. $1,200,000 $443,000 $530,000 Answer + Answer + 3.5 Answer + 4. $4,570,000 $854,000 $650,300 8.2 5. $258,400 $76,300 $43,500 Answer + Answer + 5.2 Answer + 6. $540,000 $133,250 $71,200 4.8 7. $1,329,000 $545,800 $387,120 Answer + Answer + 2.6 Answer + $884 500 $224 130 $134 900 5 9

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 5QE: Use the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of...

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