There are 2 companies selling widgets in 2 locations. Big City Widget Seller sells widgets for $4 in its high priced market. Rural Widget Seller sells widgets for $2 in its low priced market. Both companies sell 12,000,000 widgets annually, hold 1,000,000 widgets in inventory, and the cost of goods for the widgets is $1 for both companies. A. Determine the inventory turnover ratio of both companies B. Determine days in inventory of both companies
There are 2 companies selling widgets in 2 locations. Big City Widget Seller sells widgets for $4 in its high priced market. Rural Widget Seller sells widgets for $2 in its low priced market. Both companies sell 12,000,000 widgets annually, hold 1,000,000 widgets in inventory, and the cost of goods for the widgets is $1 for both companies. A. Determine the inventory turnover ratio of both companies B. Determine days in inventory of both companies
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Inventories
Section: Chapter Questions
Problem 4CP: Golden Eagle Company began operations on April 1 by selling a single product. Data on purchases and...
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There are 2 companies selling widgets in 2 locations. Big City Widget Seller sells widgets for $4 in its high priced market. Rural Widget Seller sells widgets
for $2 in its low priced market. Both companies
sell 12,000,000 widgets annually, hold 1,000,000 widgets in inventory, and the cost of goods for the widgets is $1 for both companies.
A. Determine the inventory turnover ratio of both companies
B. Determine days in inventory of both companies
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