If a company’s current ratio declined in a year during whichits quick ratio improved, which of the following is the mostlikely explanation?a. Inventory is increasing.b. Inventory is declining.c. Receivables are being collected more rapidly than inthe past.d. Receivables are being collected more slowly than inthe past.

Q: An auditor noted that client sales increased 10 percent for the year. At the same time, Cost of…

A: The audit of the sales prices is done by checking the related sales invoices which contain the…

Q: This year your company has purchased less expensivemerchandise inventory but has not changed its…

A: Gross Profit is a difference between Net sales and Cost of goods sold. The formula for calculating…

Q: Common-size and trend percents for Roxi Company's sales, cost of goods sold, and expenses follow.…

A: The net income for the current year using the trend percentage can be determined by applying the…

Q: Holding all other factors constant, indicate whether each of the following changes generally signals…

A: Ratio analysis helps to the analysis the financial statements to understand the clear view on…

Q: SJU Resources last year reported cost of goods sold of $35 million and an inventory turnover ratio…

A: Inventory turnover ratio means the cost of goods sold divided with average stock.

Q: Over the last three years, management of Beltway, Inc. has seen Inventory Turnover go from 6.3 to…

A: CCC or Cash Conversion cycle is defined as the metric used to calculate the time taken by a company…

Q: Ratio analysis of a company’s performance as shown in its profit and loss account may show a decline…

A: The decrease in the gross profit ratio may be due to the following reasons: Decrease in the selling…

Q: The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year…

A: DIO( Days Inventory Outstanding)=(Avg Inventory/COGS)*No of days

Q: 1. In FS analysis what is the basic objective of observing trends in data and ratios?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 7. Charles Inc. has an ending inventory of $423,425, and the cost of goods sold for the year just…

A: Solution:- Inventory Turnover ratio computes the pace at which the inventory is being used.

Q: Marshall Tool and Die Company has been experiencing significant foreign competition and a declining…

A: Balance Sheet is a financial statement which shows the financial position of the company. It helps…

Q: The following table shows the income from sales of a certain magazine, measured in thousands of…

A: New old ratio: New income/Old Income Thus in the given case, the new income for the interval…

Q: A company has a quick ratio of 2.3 and a current ratio of 2.8. Industry averages are 2.0 for the…

A: The difference in the Current Ratio and the Quick Ratio is Inventory as the denominator is the…

Q: If a company has a quick ratio of 1.0 and a current ratio of 2.0, it is more likely that A. the…

A: Quick ratio = 1 Current ratio = 2 Let CA = Current assets CL = Current liabilities I = Inventory

Q: Net sales of the Premiere General Store have been increasing at a reasonable rate, but net income…

A:

Q: Accounts payable turnover for Blue Industries increased from 10 to 12 during 2018. Whichof the…

A: Accounts payable turnover refers to the measure of the company’s liquidity and is used by the…

Q: Jasper Jewelry has $150 million in sales. The company expects that its sales will increase 5% this…

A: Sales =$150 Million Sale increase percentage =5% Inventories = $11 + 0.07(Sales)

Q: A manufacturer reported an inventory turnover ratio of 8.6 last year. During the current year,…

A:

Q: The management of Milque Corp. is considering the effects of various inventory-costing methods on…

A: Particulars Inventory price FIFO LIFO Net income Increasing Increases Decreases Ending inventory…

Q: e ratio was always lower. Which of the following statements would be the best interpretation for the…

A: Inventory turnover ratio establishes the relationship between the cost of goods sold and the average…

Q: When should the loss be reported in the interim income statement?

A: The inventory management will include ordering of goods, storing/holding of goods, work in progress…

Q: Suppose a company's cost of goods sold for years 2 and 3 were $283,310 and $299,390 respectively.…

A: Closing inventory is the inventory which is left and computed at the ending of an accounting period.…

Q: What is the average collection period assuming annual data is used? quarterly data is used?

A: Assuming Annual data:  Average Collection period= [Account receivable/Sales]× 365  Assuming…

Q: Gross Margin of a Merchandise Business will be calculated by using which of the following formula?…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Which of the following statements is correct?

A: Cost of Goods Sold: It refers to the cost of production of the goods sold by the company. Such…

Q: Bulldogs Inc. has recently calculated the inventory turnover for the currently year to be 30. In…

A: Answer. The company took fewer days to sell its inventory in the current year than in prior years.…

Q: Industry Average Ratio Actual 2003 Actual 2002 Current ratio 1.80 1.84 Quick ratio Inventory…

A: "Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Assume the following sales data for a company:   Current year $770,668   Preceding year 635,551…

A: Horizontal analysis is prepared to calculate the variance from previous year by showing…

Q: Use the preceding financial statements to complete the following table. Assume the industry averages…

A: " Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: company’s inventory expressed as a percentage of current assets increased from 25% last November to…

A: Lets understand the basics. Inventory is a vital part of the company's balance sheet. It shows how…

Q: Which of the following statements is correct? Group of answer choices A)When cost of goods sold as a…

A: Cost of goods sold is the total costs that is used to create a product or service, which has been…

Q: The management of Norton Corp. is considering the effects of various inventory-costing methods on…

A: The management of Norton Corp. is considering the effects of various inventory-costing methods on…

Q: hat were JT's annual sales and DSO?

A: Information Provided: Quick ratio = 1.0 Current Ratio = 1.8 Inventory Turnover = 3.5 Total current…

Q: Kareem & Sons last year reported sales of 12 million and an inventory turnover ratio of 4. The…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Inventory ManagementWilliams & Sons last year reported sales of $12 million, cost of goods…

A: One of an organization's most important commodities is its inventory. A firm's inputs and final…

Q: Bulldogs Inc. has recently calculated the inventory turnover for the currently year to be 30. In…

A: Inventory turnover measures how many times in a given period a company is able to replace the…

Q: firm with sales of $500,000 has average inventory of $200,000. The industry average for inventory…

A: The inventory turnover ratio measures how many times the inventory is consumed in a given period of…

Q: The Jimenez Corporation’s forecasted 2011 financial statements follow, along with some industry…

A: The following balance sheet line items are taken from the records of Jimenez Corporation to evaluate…

Q: Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices,…

A: LIFO Method is an inventory valuation method where inventory purchased last sold first. Whereas as…

Q: hat is the ratio that measures the number of days on average the company takes to turn its inventory…

A: Solution: Days inventory outstatnding represents the average number of days the inventory takes to…

Q: Cost of goods sold has increased

A: Gross profit refers to the difference between the total sales and the cost of goods sold and net…

Q: Which ratio measures the number of times the receivables are rotated in a year in terms of sales?…

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.