From the following hypothetical data for Riffa Co. in 2018 and 2019 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Riffa's Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2019. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance. Cost of Goods Sold Gross Profit Ending Inventory Riffa Co. Required: Calculate the followings for Riffa Co. (consider 3 decimal places) 1. Sales Revenue and Growth Rate for Y+ 1 year. 2. Inventory Turnover for 2019. 3. Forecasted Gross Profit for Y+1. 4. Projected Average Inventory Balance in Year +1 5. Projected Ending Inventory for Year + 1. 2018 48520 30560 6480 2019 56520 36800 8260

From the following hypothetical data for Riffa Co. in 2018 and 2019 to project revenues, cost of goods sold, and inventory for Year +1. Assume that Riffa's Year +1 revenue growth rate, gross profit margin growth rate, and inventory turnover will be identical to 2019. Project the average inventory balance in Year +1 and use it to compute the implied ending inventory balance. Cost of Goods Sold Gross Profit Ending Inventory Riffa Co. Required: Calculate the followings for Riffa Co. (consider 3 decimal places) 1. Sales Revenue and Growth Rate for Y+ 1 year. 2. Inventory Turnover for 2019. 3. Forecasted Gross Profit for Y+1. 4. Projected Average Inventory Balance in Year +1 5. Projected Ending Inventory for Year + 1. 2018 48520 30560 6480 2019 56520 36800 8260

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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