he following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of ersonal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Classics: Apple Mattel Cost of merchandise sold $163,756 $2,716 3,956 543 Inventory, end of year Inventory, beginning of the year 4,855 601 a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place. b. Would you expect Mattel's inventory turnover to be higher or lower than Apple's? Why?

he following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of ersonal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Classics: Apple Mattel Cost of merchandise sold $163,756 $2,716 3,956 543 Inventory, end of year Inventory, beginning of the year 4,855 601 a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place. b. Would you expect Mattel's inventory turnover to be higher or lower than Apple's? Why?

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Inventories

Section: Chapter Questions

Problem 2ADM: Costco, Walmart, Nordstrom: Inventory turnover and number of days sales in inventory The general...

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6. The following information are extracted from the books and records of the Company and its branch. The balances are at December 31,2021, the third year of the corporation’s existence. (see image below). The branch acquires all of its merchandise from the home office. The inventories of the branch at billed prices on January 1, 2021 is P 90,000 and on December 31, 2021 is P100,800. Determine a. The percentage of profit on cost that the home office uses to bill merchandise shipped to branch and b. The balance of the Shipments to Branch account before the books are closed
The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer of personal computers and related products, and Mattel Inc., a manufacturer of toys, including Barbie®, Hot Wheels®, and Disney Classics: Apple Mattel Cost of merchandise sold $140,089 $2,896 Inventory, end of year 2,349 588 Inventory, beginning of the year 2,111 562 a. Determine the inventory turnover for Apple and Mattel. Round to one decimal place. Apple Mattel b. Would you expect Mattel’s inventory turnover to be higher or lower than Apple’s?
PC Mall, Inc., is a direct marketer of computer hardware, software, peripherals, and electronics.In a recent annual report, the company reported that its revenue is “recognized upon receipt of theproduct by the customer.”Required:1. Indicate whether PC Mall’s sales terms are FOB shipping point or FOB destination.2. Assume PC Mall sold inventory on account to eCOST.com on December 28 that was to bedelivered January 3. The inventory cost PC Mall $25,000 and the selling price was $30,000.What amounts, if any, related to this transaction would be reported on PC Mall’s balance sheetand income statement in December? In January?3. Assume PC Mall purchased electronics on December 29 that were shipped that day andreceived on January 2. For these goods to be included in PC Mall’s inventory on December 31,would the terms have been FOB destination or FOB shipping point?
2. The following information appeared in the accounting records of a retail store for the year ended Dec. 31, 2019: Sales P300,000 Purchases 140,000 Inventories January 1 70,000 December 31 100,000 Sales Commission 10,000 The gross margin was a. P190,000 b. P 180,000 c. P160,000 d. P 150,000
Given the following financial statements for Voice-Soft, a voice recognition company, answer the questions on the next page. Income Statements Year Ended December 31, 20X2 20X1 Sales 8000 5000 Cost of goods sold (COGS) 7300 4380 EBITDA 700 620 Depreciation and Amortization 200 120 EBIT 500 500 Interest Expense 75 100 EBT 425 400 Taxes (20%) 85 80 Net Income 340 320 Balance Sheets As of December 31, 20X2 20X1 Assets Current assets: Cash 300 20 Short term investments 460 100 Accounts receivable 640 400 Inventories 800 480 Total current assets 2200 1000 Net plant and equipment 1800 1500 Total assets 4000 2500 Liabilities and Stockholders' Equity Current liabilities: Notes…
Supposing EQR Trading has completed the following transactions for the month of October, 2020. 1. Sale of goods to company A on credit P200,000. 2. Purchase of goods of P400,000 from company B on credit 3. Purchase of goods of P500,000from company C on credit. 4. Sales of office-use equipment of P100,000 to company D on credit. What is the total amount recorded in the Sales account for this month?
The following information of ABC Merchandise Business for the year ended 31st December 2020 Account Amount (OMR) Sales Discounts 2200 Sales returns 22,000 Sales 257,000 Interest revenue 1000 Gain on Sale of land 2000 Interest expense 7,000 Salesman Salaries 38,000 Office rent 1400 Cost of Goods sold 160,000 Electricity expense – Office 300 Rent expense - office 100 Salesman commission 12500 Advertising expense 3500 Marketing expense 2500 Other non-operating expense 1000 What will be the Income from operation assumes that the business follows Multi step income statement? a. OMR 19,500 b. OMR 9,500 c. OMR 14,500 d. OMR 10,000
The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products: Tomato Happy Times Cost of merchandise sold $4,890,100 $941,700 Inventory, end of year 98,000 98,000 Inventory, beginning of the year 60,000 121,000 a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place. Tomato Happy Times b. Would you expect Happy Times inventory turnover to be higher or lower than Tomato’s?
On November 1, 2025, Alpha Omega, Inc. sold merchandise for $19,000, FOB destination, with payment terms, n/30. The cost of goods sold was $5,700. On November 3, the customer returns on 3 this sale amounted $7,600 of goods purchased. The company received the balance on November 9, 2025. Calculate the cost of goods sold from these transactions.
The table below contains selected financial information from recent financial statements of KBI Toys and Little Tikes Adventure Toys, Inc., two toy manufacturing companies ($ in thousands): KBI Toys Little Tikes 12/31/2021 12/31/2020 12/31/2021 12/31/2020 Net sales $ 80,622 $ 72,120 $ 63,480 $ 68,900 Cost of goods sold 58,900 53,800 40,786 46,325 Year-end inventory 7,400 6,900 5,800 6,300 Required:Calculate the 2021 gross profit ratio, inventory turnover ratio, and the average days in inventory for the two companies. (Round "Inventory turnover" answer to two decimal places.) KBI TOYS Little Tikes Gross Profit Ratio % % Inventory Turnover Average Days in Inventory. days days
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1. A business operate based on a mark-up cost of 40%. If the opening and closing inventories were Gh 3,100 and Gh 4,000 respectively,while purchases were Gh 42,100. What was the value for sales? 2. The following related to God's blessings enterprises for the year ended 31 December 2019. Production cost of goods Production of cost goods completed sales Gh Sales 1,080,000 Inventory of finished goods at a cost. 1,939,500 Inventory of finished goods at a cost 255,000 Selling and distribution 216,000 expenses. Administrative expenses. 180,000 Financial charges 48,000 Goods are transferred to the ware house at a cost plus 100/3%. (a).What is the value of opening inventories. (b)What is the closing inventories.