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...
icon
Related questions
Question

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

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for discounts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College