BE18-12 The following data are from the income statements of Haskin Company.20172016Sales revenue$6,420,000940,0004,340,0001,020,000$6,240,000860,0004,661,000940,000Beginning inventoryPurchasesEnding inventory(a) Compute for each year (1) the inventory turnover and (2) the days in inventory.(b)from these data?What conclusions concerning the management of the inventory can be drawn

Name: BE18-12 The following data are from the income statements of Haskin C
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: BE18-12 The following data are from the income statements of Haskin Company.20172016Sales revenue$6,420,000940,0004,340,0001,020,000$6,240,000860,0004,661,000940,000Beginning inventoryPurchasesEnding inventory(a) Compute for each year (1) the invent

The inventory turnover ratio is calculated by dividing the purchases or cost of goods sold by the…

Business

Accounting

BE18-12 The following data are from the income statements of Haskin Company. 2017 2016 Sales revenue Beginning inventory Purchases $6,420,000 940,000 4,340,000 1,020,000 $6,240,000 860,000 4,661,000 940,000 Ending inventory (a) Compute for each year (1) the inventory turnover and (2) the days in inventory. (b) - from these data? What conclusions concerning the management of the inventory can be drawn

BE18-12 The following data are from the income statements of Haskin Company. 2017 2016 Sales revenue Beginning inventory Purchases $6,420,000 940,000 4,340,000 1,020,000 $6,240,000 860,000 4,661,000 940,000 Ending inventory (a) Compute for each year (1) the inventory turnover and (2) the days in inventory. (b) - from these data? What conclusions concerning the management of the inventory can be drawn

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 11E

See similar textbooks

Similar questions

Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Inventory turnover
The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000
Inventory analysis Costco Wholesale Corporation (COST) and Wal-Mart Stores Inc. (WMT) compete against each other in general merchandise retailing, gas stations, pharmacies, and optical centers. Below is selected financial information for both companies from a recent year's financial statements (in millions): a. Determine for bom companies (1) the inventory turnover and (2) the days' sales in inventory. Round to one decimal place. b. Compare and interpret the inventory metrics computed in (a).
At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
Financial statement data for years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Financial statement data for years ending December 31 for Tango Company follow: a. Determine the inventory turnover for 20Y7 and 20Y6. b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Days’ sale in receivable
Dollar-Value LIFO Kwestel Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2015. The following information about the inventory at the end of each year is available from Kwestels records: Required: Calculate the dollar-value LIFO inventory at the end of each year. Round to the nearest dollar.
On December 31, Pitts Manufacturing Company reports the following assets: What is the total amount of Pitts inventory at year-end?