Over the last three years, management of Beltway, Inc. has seen Inventory Turnover go from 6.3 to 5.9. The company has negotiated new terms of trade with its principal supplier of 2/15, net 60 (the old terms were 2/15 net 45). The company has also seen a change in AR turnover from 12 to 10.5.  Explain how each of these changes would affect the company operating and cash conversion cycles.

Q: Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: To complete this  we have to use the following formulas -   Cash Conversion cycle = Debtor's…

Q: The Nyameye Manufacturing Company increased its merchandise inventory by GH¢17,000 over the year.…

A:

Q: The Tampa Manufacturing Company had the following financial data for December 31, the end of the…

A: We have the following information: Cost of goods sold: $500,000 Beginning Merchandise Inventory:…

Q: Spider's Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: The results of the operating activities of Kobe Company for the current year are as follows: Based…

A: The income statement shows the net income or net loss calculated by deducting the expenses from the…

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: The following data were extracted from the income statement of Keever Inc.:…

A: a. Determine for each year (1) the inventory turnover and (2) the number of days’ sales in…

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: 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: In an effort to improve its competitive position, Oregon Co. recently introduced a new inventory…

A: An inventory control system is a technology that company uses to track goods supply chain. The…

Q: Patty Corporation has estimated its activity for December 2006. Selected data from these estimated…

A: Budgeting is an important part of the business process. Without budgeting a business cannot track…

Q: Sapphire Aerospace operates 52 weeks per year, and its cost of goods sold last year was $6,500,000.…

A: a) Working note:

Q: Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: Cash Conversion Cycle = Days Inventory Outstanding + Days Sales Outstanding - Days Payable…

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

A: The inventory turnover ratio helps to analyze the efficiency of the business to convert its…

Q: A concrete corporation had cost of goods sold of $1,350,000 for the third quarter. The beginning…

A: SOLUTION- FORMULA'S AVERAGE INVENTORY = (BEGINNING INVENTORY + ENDING INVENTORY) / 2 INVENTORY…

Q: Bobaflex Corporation has ending inventory of $527,156 and cost of goods sold for the year just ended…

A: Given information: Cost of goods sold for the year is $8,543,132 Ending inventory is amounted to…

Q: A concrete corporation had cost of goods sold of $1,350,000 for the third quarter. The beginning…

A: Inventory turnover ratio = Cost of goods sold/Average inventory Average inventory = (Beginning…

Q: A concrete corporation had cost of goods sold of $1,350,000 for the third quarter. The beginning…

A: Average Inventory = (Beginning Inventory + Ending Inventory) / 2 Inventory Turnover = Cost of goods…

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

A:

Q: On January 1, The Parts Store had a $370.000 inventory at cost. During the first quarter of the…

A: Closing inventory represents the inventory that remains at the end of the accounting year.

Q: Crockett Electronics has a quick ratio of 2.00x, $26,775 in cash, $14,875 in accounts receivable,…

A: Quick ratio of the firm is 2.00x , current assets is $59,500 and current liabilities is $20825.…

Q: what is the operating cycle

A: Answer:   104.42 days

Q: Who benefits from this decision? Who is harmed by this decision? Are Jay and Tina acting in an…

A:

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: Parker Company had $5,000,000 in sales and reported a $300,000 loss in its annual report to…

A: Break even point is the number of sales where all the Expenses variable and fixed get covered and no…

Q: At year-end, Delectable Company experienced a storm surge which caused severe damage to the entire…

A: Formula: Cost of good sold = Net Sales - Gross profit.

Q: Christie Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: Answer- Part 1 – Calculation of Cash Conversion Cycle -   Inventory Conversion Period  = 365 /…

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: In an effort to improve its competitive position, Oregon Co. recently introduced a new inventory…

A: Particulars Percentage of Sales Before New System Percentage of Sales After New System Sales…

Q: Determine the amount of sales (units) that would be necessary under Break-Even Sales Under Present…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…

Q: Spider’s Auto Parts Store ended its fiscal year last month with a costof sales of $3,600,000 and an…

A: Formula to calculate inventory turnover ratio is: ITR=COST OF GOODS SOLDAVERAGE INVENTORY

Q: On January 1, The Parts Store had a $370,000 Inventory at cost. During the first quarter of the…

A: Gross Profit or Gross Margin Method is one of the methods of Calculating Closing Inventory. Under…

Q: Endor Company begins the year with $90,000 of goods in inventory. At year-end, the amount in…

A: Inventory Turnover Choose Numerator:     /  Choose Denominator:    = Inventory Turnover Cost of…

Q: Libscomb Technologies' annual sales are $6,974,991 and all sales are made on credit, it purchases…

A: inventory turnover formula: inventory turnover =cogsinventory given, COGS = $3511,535 inventory =…

Q: The Nyameye Manufacturing Company increased its merchandise inventory by GH¢17,000 over the year.…

A: Cost of goods sold = Sales - gross profit = GH¢975,000 - GH¢975,000*45% = GH¢536,250 Purchase of…

Q: Sizemo Elektroniks sells semiconductors that are used in games and small toys. The company has been…

A: First of all, we need to know what is lower of cost or market value. This is the method of inventory…

Q: Analyzing Operational Changes Operating results for department B of Shaw Company during 2019 are as…

A: Net Income: It is the amount calculated by subtracting total expenses from total revenue for the…

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: Palmer Co. had cost of goods sold of $7,576, ending inventory of $2,270, and average inventory of…

A: Inventory turnover ratio = Cost of goods sold / Average stock Day sales in inventory = Ending…

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: A firm with sales of $500,000 has average inventory of $200,000. T he industry average for inventory…

A: Computation of inventory turnover:

Q: Evaluate the decision not to apply the lower-of-cost-or-market method in the current quarter.  Who…

A: The lower-of-cost or market method is a process of inventory valuation of a Company. This is…

Q: Jack Jones, the materials manager at Precision Enterprises,is beginning to look for ways to reduce…

A: Weekly of Supply can be calculated by below formula: [Raw materials + work in process + finished…

Q: find the inventory turnover at cost.

A: Inventory turnover calculates the number of times inventory can be converted into sales by company.…

Q: The Beatrice Manufacturing Company increased its merchandise inventory by $29,000 over the year. The…

A: Cost of goods sold = Sales - Gross profit Cost of goods sold = $1,035,000 - ($1,035,000 x 45%) Cost…

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.