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. b. Would you expect Mattel's inventory turnover to be higher or lower than Apple's? Why?
Q: e following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer…
A: Inventory turnover = Cost of merchandise sold/Average inventory Average inventory = (Beginning…
Q: The following data were extracted from the income statement of Keever Inc.: Current Year Previous…
A:
Q: McKendrick Shoe Store has a beginning inventory of $45,000. During the period, purchases were…
A: The cost of goods available for sale is the cost that is incurred to produce the goods that are…
Q: Broadway Communications reported the following figures in its annual financial statements: (Click…
A: Average inventory = ($560 + $450)/2 Average inventory = $1,010/2 Average inventory = $505…
Q: A recent annual report of Gateway $2000 , Inc. , shows : cost of goods sold. $4,072; inventory at…
A: Operating cycle is the number of days required to receive Inventory, sale of Inventory and…
Q: Angel Dress Shop had net retail sales of $125,000 during the current year. The following additional…
A: There are multiple methods for measuring inventory. The retail method advocates valuing the closing…
Q: Selected information from the accounting records of Carbine Manufacturing follows: Net sales…
A:
Q: The following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer…
A: Requirement a: Compute the inventory turnover ratio.
Q: The Northern Company installed a new inventory management system at the beginning of Year 1. Shown…
A: Inventory turnover = cost of goods sold / average inventory Days sales in inventory = ending…
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: The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a…
A: Tomato Happy Times Cost of merchandise Sold $54,24,900 $25,20,500 Inventory, end of year…
Q: The following is a portion of the condensed income statement for Rowan, Inc., a manufacturer of…
A: 1. calculate inventory turnover: Inventory turnover = Cost of goods sold / Average inventory…
Q: Smart Watch Company reported the following income statement data for a 2-year period. 2016 2017…
A: (b) The effect of over-stated ending inventory in the first year will be offset by the overstated…
Q: Dimitri Company, a manufacturer of tools, has provided the following data from its accounting…
A: Inventories are the resources which are manufactured, are kept as capital assets and are sold to…
Q: Ayayai Company had the following account balances at year-end: Cost of Goods Sold $63,840; Inventory…
A: Shortage in inventory for adjusting entry = $14,610 - $13,080 Shortage in inventory = $1530
Q: A business has compiled the following information for the year ended 31 October 20X2: $ Opening…
A: Sales revenue = Cost of goods sold / ( 1 - Gross profit rate )
Q: he following data (in millions) were taken from recent annual reports of Apple Inc., a manufacturer…
A: Ratio Analysis: It is the process of determining the relationship between accounting figures of…
Q: Windsor, Inc. uses a perpetual inventory system and reported $513,260 of inventory at the beginning…
A: Inventory as per perpetual inventory system = Beginning inventory + Purchases - cost of goods sold =…
Q: Suppose at December 31 of a recent year, the following information (in thousands) was available for…
A: Inventory turnover ratio indicates in how many times a company sold its inventory during a…
Q: Smart Watch Company reported the following income statement data for a 2-year period. 2016 2017…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: Terizla Company is a retailer and has five major product lines. At year-end, the entity provided the…
A: The accounting rule allows the valuation of inventory at a lower of cost or net realizable value.…
Q: A business has compiled the following information for the year ended 31 October 2002: $ Opening…
A: Sales = Cost of sales×10060=$952500×10060=$1587500
Q: The following data were extracted from the income statement of Shriver Inc.: Current Year Prior…
A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = Beginning…
Q: Russell Retail Group begins the year with inventory of $55000 and ends the year with inventory of…
A: Formula: Cost of goods sold = Beginning inventory +Net purchases - Ending Inventory
Q: Suppose at December 31 of a recent year, the following information (in thousands) was available for…
A: First calculate average inventory.
Q: Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the…
A: The inventory turnover ratio is computed by dividing the cost of goods sold by average…
Q: The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a…
A: a. Calculate the inventory turnover for company T and company H. Company T: Working note:…
Q: Rams Inc reported the following amounts for the year: It uses periodic method Ending…
A: Cost of sales can be computed as follows, =Opening inventory level + Purchases made - Purchases…
Q: During the year just ended, the retailer James Corporation purchased $450,000 of inventory. The…
A: Inventory turnover is calculated as cost of goods sold divided by average inventory.
Q: Over the past several years, Landmark Supplies has averaged a gross profit of 34%. At the end of…
A: Gross profit on sales = Sales x estimated gross profit rate = $1,100,000 x 34% = $374,000
Q: The table below contains selected information from recent financial statements of The Home Depot,…
A: Gross profit ratio is computed by dividing the gross profit by the sales and is expressed in…
Q: What is the estimated cost of goods sold at the end of the six-month period using the LIFO retail…
A: Beginning inventory at cost = $70000 Beginning inventory at retail = $100000 Net purchases at cost =…
Q: Russell Retail Group begins the year with inventory of $55,000 and ends the year with inventory of…
A: Calculation of total purchase: Particulars Amount Purchase on February 17 $210,000 Purchase…
Q: The following data were extracted from the income statement of Martin Solutions, Inc.: Year 2…
A: Inventory turnover = Cost of goods sold/Average inventory Days' sale in inventory = 365/Inventory…
Q: Murphy Co. is a high-end retailer of fine fashions for men. Murphy’s inventory balance at…
A: Cost of goods sold: It can be defined as the total of direct costs that are incurred by the business…
Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis…
A: Cost of goods sold means the cost incurred on the goods which have been sold out. This figure can be…
Q: Refer to the following selected financial information from Phantom Corp. Compute the company's days'…
A: GIVEN Merchandise inventory Year 2 = 287000 Year 1 =269500 Cost of goods sold Year 2 = 470400…
Q: Haymitch Global Industries is a world leading producer of loudspeakers and other electronics…
A: Ratio analysis is a method of measuring the financial position of the organization with different…
Q: On December 31, 2010, what is the estimated cost of missing inventory?
A: Net sales = Sales - sales discount - sales return = $3,400,000 - 20,000 - 30,000 = $3,350,000 Cost…
Q: The records of Heese Stores provided the following data for the year: Cost Retail (Base inventory)…
A: "LIFO" stands for last-in, first-out, meaning that the recently purchased inventory items are…
Q: Anthony Corporation reported the following amounts for the year: Net sales $ 296,000…
A: Inventory turnover = Cost of goods sold / Average inventory = $138,000/50000 = 2.76
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 general merchandise retail industry has a number of segments represented by the following…
A: Inventory turnover ratio = Cost of goods sold / average inventory Number of days’ sales in inventory…
Q: At the beginning of the year, ABC's Inventory balance was $91,000. During the year ABC bought…
A: The cost of goods sold can be calculated by adding up the net purchase and freight in and deducting…
Q: Russell Retail Group begins the year with inventory of $55,000 and ends the year with inventory of…
A: Here in this question, we are required to calculate the cost of goods sold. Cost of goods sold is a…
Q: Starstruck Company is a retailer of Italian furniture and has five major product lines. At year-end,…
A: >NRV or Net Realizable value is used to determine the inventory value to be reported using the…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 3 images
- Apple Inc. designs, manufactures, and markets personal computers and related personal computing and communicating solutions for sale primarily to education, creative, consumer, and business customers. Substantially all of the companys sales over the last five years are from sales of its Macs, iPods, iPads, and related software and peripherals. For two recent fiscal years, Apple reported the following (in millions): Assume that the accounts receivable (in millions) were 24,094 at the beginning of fiscal Year 1. 1. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places. 2. Compute the days sales in receivables at the end of Year 2 and Year 1. Use 365 days and round to one decimal place. 3. What conclusions can be drawn from (1) and (2) regarding Apples efficiency in collecting receivables?Ralph Lauren Corporation designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The companys products include such brands as Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren, Polo Jeans Co., and Chaps. Polo Ralph Lauren reported the following (in thousands) for two recent years: Assume that accounts receivable (in millions) were 607,000 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to two decimal places. b. Compute the days sales in receivables for Year 2 and Year 1. Use 365 days and round to one decimal place. c. What conclusions can be drawn from these analyses regarding Ralph Laurens efficiency in collecting receivables?Polo Ralph Lauren Corporation designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The companys products include such brands as Polo by Ralph Lauren, Ralph Lauren Purple Label, Ralph Lauren, Polo Jeans Co., and Chaps. Polo Ralph Lauren reported the following (in thousands) for two recent years: Assume that accounts receivable (in millions) were 486,200 at the beginning of Year 1. a. Compute the accounts receivable turnover for Year 2 and Year 1. Round to one decimal place. b. Compute the days sales in receivables for Year 2 and Year 1. Use 365 days and round to one decimal place. c. What conclusions can be drawn from these analyses regarding Ralph Laurens efficiency in collecting receivables?
- 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?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?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?
- In its first year of operations, Dulany Company, a clothing store, purchased $18,000 of merchandisefrom a supplier on account, terms 2/10, n 30. Dulany Company returned $3,000 of defectivemerchandise, and then paid the amount due within the discount period. During the year, the companysold merchandise inventory costing $12,000 to its customers. What would be the balance in Dulany’sCompany’s Merchandise Inventory account at the end of the year?A. $2,700B. $3,200C. $3,300D. $2,640The following are extracted from the records of DONATELLO CO. and its branch MICHELANGELO Co. on December 31, 2008, the third year of the corporation's existence: DONATELLO CO. MICHELANGELO CO. Allowance for Overvaluation $72,500 Sales $600,000 Expenses $200,000 Shipment from Home Office $444,000 The branch acquires all of its merchandise from the Home Office. The inventories of the Branch at billed prices are: January 1, 2008-$47,717.18 December 31, 2008-$84,000 Determine the branch profit-adjusted. a)107,500 b)49,000 c)25,766 d)58,500The table below contains selected financial information from recent financial statements of KBI Toys and Little Tikes Adventure Toys, Inc., two toy manufacturing companies ($ 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
- Dimitri Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2020. Inventory at December 31, 2020 (based on physical count of goods in Dimitri's plant, at cost, on December 31, 2020) $1,520,000 Accounts payable at December 31, 2020 1,200,000 Net sales (sales less sales returns) 8,150,000 Additional information is as follows. 1. Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $31,000 and were billed at $40,000. The shipment was on Dimitri's loading dock waiting to be picked up by the common carrier. 2. Goods were in transit from a vendor to Dimitri on December 31, 2020. The invoice cost was $76,000, and the goods were shipped f.o.b. shipping point on December 29, 2020. 3. Work in process inventory costing $30,000 was sent to an outside processor for plating on December 30, 2020. 4. Tools returned by…Dimitri Company, a manufacturer of small tools, provided the following information from its accounting records for the year ended December 31, 2020. Inventory at December 31, 2020 (based on physical count of goods in Dimitri’s plant, at cost, on December 31, 2020) $1,520,000 Accounts payable at December 31, 2020 1,200,000 Net sales (sales less sales returns) 8,150,000 Additional information is as follows. 1. Included in the physical count were tools billed to a customer f.o.b. shipping point on December 31, 2020. These tools had a cost of $31,000 and were billed at $40,000. The shipment was on Dimitri’s loading dock waiting to be picked up by the common carrier. 2. Goods were in transit from a vendor to Dimitri on December 31, 2020. The invoice cost was $76,000, and the goods were shipped f.o.b. shipping point on December 29, 2020. 3. Work in process inventory costing $30,000 was sent to an outside processor for plating on December 30, 2020. 4. Tools…Below are selected transactions of Diya Automotive Company during 2022. Aug. 1 Diya Automotive Company bought $9,200 of merchandise inventory, a new factory machine for $2,600 and office supplies for $800 from a supplier. (All plus HST of 13% on account). Aug. 15 Diya returned $1,000 of the merchandise inventory to the supplier. Sept. 1 Diya sold merchandise inventory costing $750 for $1,300 (plus HST of 13%) to Lily Peng on account. Sept. 15 Lily Peng returned $300 from the Sept.1 sale. The cost of the returned items was $150 and they were returned to inventory. Oct. 1 Diya purchased $1,200 of office equipment (plus HST of 13%) from Staples on account. Prepare all the necessary journal entries for the above transactions. Assume that Diya Automotive Company uses a perpetual inventory system and an HST rate of 13%.
