Compute for the Average Sales Period/Average Age of Inventory, use 360 days

Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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Jinchuriki Inc.'s Financial Statement for years 2014-2015. Compute of the Average Sales Period/ Average Age of Inventory.

INCOME STATEMENTS
|BALANCE SHEETS
2015 JAssets
$ 5,000
2014
2014
2015
$ 4,760
3,560
Net sales
Cash
60
50
COGS (excl. depr.)
Depreciation
Other operating expenses
3,800
ST Investments
40
170
200
Accounts receivable
380
500
500
500
480
Inventories
820
1,000
$ 1,550
2,000
$ 3,550
ЕBIT
550
Total CA
$ 1,300
Interest expense
Pre-tax earnings
100
120
Net PP&E
1,700
450
380
Total assets
$ 3,000
152
228 Liabilities and equity
8 Accounts payable
220 | Accruals
Notes payable
Total CL
Taxes (40%)
NI before pref. div.
180
270
Preferred div.
8
$
190
200
Net income
262
280
300
130
280
Other Data
600
780
Common dividends
$50
1,000
$ 1,600
$48
Long-term bonds
Total liabilities
1,200
Addition to RE
$214
$170
$ 1,980
Tax rate
40%
40%
Preferred stock
100
100
Shares of common stock
50
50
Common stock
500
500
$5.24
$4.40
Earnings per share
Dividends per share
Price per share
Retained earnings
Total common equity
Total liabs. & equity
800
$ 1,300
$ 3,000
970
$ 1,470
$ 3,550
$0.96
$1.00
$40.00
$27.00
Compute for the Average Sales Period/Average Age of Inventory, use 360 days
Final answers should be in 2 decimal places
For example: if your answer is 1.5432 final answer is 1.54 days, if your answer is 1.5632 final answer is
1.57 days
%24
%24
%24
%24
%24
Transcribed Image Text:INCOME STATEMENTS |BALANCE SHEETS 2015 JAssets $ 5,000 2014 2014 2015 $ 4,760 3,560 Net sales Cash 60 50 COGS (excl. depr.) Depreciation Other operating expenses 3,800 ST Investments 40 170 200 Accounts receivable 380 500 500 500 480 Inventories 820 1,000 $ 1,550 2,000 $ 3,550 ЕBIT 550 Total CA $ 1,300 Interest expense Pre-tax earnings 100 120 Net PP&E 1,700 450 380 Total assets $ 3,000 152 228 Liabilities and equity 8 Accounts payable 220 | Accruals Notes payable Total CL Taxes (40%) NI before pref. div. 180 270 Preferred div. 8 $ 190 200 Net income 262 280 300 130 280 Other Data 600 780 Common dividends $50 1,000 $ 1,600 $48 Long-term bonds Total liabilities 1,200 Addition to RE $214 $170 $ 1,980 Tax rate 40% 40% Preferred stock 100 100 Shares of common stock 50 50 Common stock 500 500 $5.24 $4.40 Earnings per share Dividends per share Price per share Retained earnings Total common equity Total liabs. & equity 800 $ 1,300 $ 3,000 970 $ 1,470 $ 3,550 $0.96 $1.00 $40.00 $27.00 Compute for the Average Sales Period/Average Age of Inventory, use 360 days Final answers should be in 2 decimal places For example: if your answer is 1.5432 final answer is 1.54 days, if your answer is 1.5632 final answer is 1.57 days %24 %24 %24 %24 %24
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