The Southern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 1 Year 2 Sales revenue $8,000,000 $10.000,000 Cost of goods sold 4,000,000 4,900,000 Beginning inventory 500,000 530,000 Ending inventory 530,000 600,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations.

Q: Inventory Turnover and Days' Sales in Inventory The Southern Company installed a new inventory…

A: The inventory turnover ratio indicates the efficiency of the management to sell out its inventory…

Q: the following information appears in B corporation's records for the year ended December 31:…

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: The following data were taken from the financial records of Mydorf Company. Net Sales Beginning…

A: Introduction: Written records that describe or attest to company transactions are known as financial…

Q: Gecelle Company reported during the current year beginning inventory P500,000, net…

A: Cost of goods sold = Sales - Gross profit =P3,200,000 - P3,200,000 x 25% = P2,400,000

Q: Sheffield Company took a physical inventory on December 31 and determined that goods costing S…

A:

Q: Crane Inc. took a physical inventory at the end of the year and determined that $787k of goods were…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: inventory turnover ratio

A: Inventory turnover ratio = Cost of goods sold/((Inventory (beginning) + Inventory (ending))/2)

Q: Loire Co., a calendar year-end firm, has used the FIFO method of inventory measurement since it…

A: Retained Earnings is the part of profit which is not distributed to shareholders as dividend but…

Q: Carrilion Company had beginning inventory of $80,000, ending inventory of $110,000, cost of goods…

A: Inventory turnover = Cost of goods sold/Average inventory

Q: Butter Company took a physical inventory at the end of the year and determined that $190,000 of…

A: Freight on Board Destination means that the goods will be transferred and the legal title of the…

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: Butter Company took a physical inventory at the end of the year and determined that $190,000 of…

A: FOB destination means Freight On board destination which implies that the seller is seller is the…

Q: A. Macarty Company's records indicate the following information for the year: Merchandise inventory,…

A: Cost of goods sold = sales - sales x gross profit ratio = $3100000 - 3100000*30% = $2170000

Q: The financial year of Mitex Co ended on 31 December 20X1. An inventory count on January 4 20X2 gave…

A: We have the following information: Total Inventory as on January 4 20X2: $527,300 Purchase of…

Q: Lewis Incorporated and Clark Enterprises report the following amounts for the year.       Lewis…

A: Average Days Inventory = Average InventoryCost of Goods soldx365

Q: Walker Corp. is a merchandising company that uses the periodic inventory system. Selected account…

A: Cost of goods sold = Beginning inventory + Purchases - Ending inventory  Net income = Sales - COGS -…

Q: Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO…

A: Businesses that employ the LIFO Inventory Costing Method sell their old inventory stock through the…

Q: Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory…

A: Inventory turnover ratio: It tells about the number of times inventory sold in an accounting period.…

Q: At the end of the year, Nancy Company had $55,000 of inventory on hand. While the perpetual records…

A: At the end of each accounting period, inventory accounts are reconciled with physical inventory in…

Q: Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory…

A: Inventory turnover ratio of the company measures how many times inventory sold in a particular year.…

Q: The Northern Company installed a new inventory management system at the beginning of 2018. Shown…

A: Inventory turnover ratio measures the number of times a company has sold its inventory. The ratio…

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: A company reports the following:   Cost of goods sold $2,263,000   Average inventory 182,500…

A: Introduction: Inventory turnover is a financial ratio that indicates how frequently a firm's…

Q: Qtso Company reported during the current year the following: P 500,000 2,500,000 3,200,000 A…

A: The Cost of Goods sold is the Cost of producing the inventory by the firm. The Ending inventory is…

Q: A company reports the following:   Cost of goods sold $3,960,250   Average inventory 255,500 Round…

A: Inventory Turnover = Cost of goods sold/ Average Inventory Number of days sales in Inventory =…

Q: Princeton Corp. reported the following amounts on their financial statements for Year 1, Year 2, and…

A: Overstated: This term shall mean that the account balance of a particular item is recorded at a…

Q: or office space 2,400,000 Officers' salaries 3,000,000 Insurance 1,700,000 Sales representative…

A: selling expenses are those expenses that are to be incurred by the departments of sales of an…

Q: Bell Inc. took a physical inventory at the end of the year and determined that $780k of goods were…

A: Purchase of goods in FOB shipping point means that ownership is transferred to the buyer at the time…

Q: The following items were taken from the records of Slow Boat Company, which uses a periodic…

A: The income statement is an essential part of the financial statements of the company. It is prepared…

Q: Uptown Company used the perpetual method to record inventory transactions for the current year.…

A: Cost of goods sold includes all the cost which is directly associated with the production of the…

Q: During year 2, Dunn Company purchased $1,920,000 of inventory. The cost of goods sold for year 2 was…

A: Compute the beginning inventory: Cost of goods sold $1,800,000 Add: Ending inventory 360,000…

Q: Urban Outfitters reported the following information for its most recent year of operation:…

A: Ending inventory = Beginning inventory + Purchases - Cost of goods sold

Q: Jackal Company reported that a flood recently destroyed many of the financial records. The entity…

A: Cost of goods available for sales(COAS) = cost of opening inventory + cost of purchase  Hence…

Q: .Your review of ABC Company's inventory and related records for the year revealed the following…

A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold

Q: Alexandria Company provided the following data for the current year: Inventory end of the fiscal…

A: Cost of Goods Manufactured is a schedule or statement which shows the total production costs of…

Q: Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning…

A: Under the perpetual method, the inventory is tracked continuously. Alternatively, a perpetual…

Q: The year-end financial statements of Collette Inc. reported the following information (in…

A: INTRODUCTION: Days inventory outstanding is the average number of days it takes for a company to…

Q: Delta Apparel Inc. uses a perpetual inventory system. At the beginning of the year inventory…

A: The ending inventory is calculated as difference between total goods available for sale and cost of…

Q: Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory…

A: The ratio analysis is done to analyse the financial statement of the business with different types…

Q: Your review of Mine Company's inventory and related records for the year revealed the following…

A: Opening inventory (O) = 450000 Purchases (P) = 3150000 Sales = 4200000 Gross profit ratio = 30%…

Q: Double A Corporation provided the following information for the current year:   Beginning…

A: Freight in is a direct expense . Cost of goods sold = Selling expense x 6 times = 4,000,000 x 6…

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: The year 2 average days inventory outstanding is:

A: Days inventory outstanding = (Average Inventory / Cost of Sales) * 365

Q: Karen Company repoted the following information for the current year: Beginning inventory…

A: 1) Calculation of Cost of goods available for sale   Particulars P P       Beginning…

Q: Lewis     Clark   Inventory (beginning) $ 14,000   $

A: Lewis     Clark   Inventory (beginning) $ 14,000   $ 40,000   Inventory (ending)   8,000…

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: company provided the following data: sales, $500,000; beginning inventory, $40,000; ending…

A: Cost of goods sold=Sales -Gross profit=$5,00,000-$1,50,000=$3,50,000... As per formula;;; Cost of…

Q: Vaughn Manufacturing took a physical inventory on December 31 and determined that goods costing…

A: A physical check of stock is a real tally of the considerable number of items that a business stock.…

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.