Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows: I n v e n t o r y T u r n o v e r R a t i o = C o s t o f g o o d s s o l d A v e r a g e i n v e n t o r y Note: Average inventory is calculated with the help of following formula: A v e r a g e i n v e n t o r y = ( B e g i n n i n g i n v e n t o r y + E n d i n g i n v e n t o r y ) 2 Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula: D a y S a l e s i n I n v e n t o r y = I n v e n t o r y * 365 C o s t o f G o o d s S o l d Requirement-1: To calculate: the inventory turnover and days sales in inventory.

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Answer 1

Question

Chapter 5, Problem 5.2SP

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-1:

To calculate: the inventory turnover and days sales in inventory.

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-2:

To indicate: the company’s performance in comparison with its competitors.

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Calculate activity measures The following information was available for the year ended December 31, 2016:Net sales $365,000Cost of goods sold 292,000Average accounts receivable for the year 14,600Accounts receivable at year-end 16,000Average inventory for the year 73,000Inventory at year-end 78,400Required:Calculate the inventory turnover for 2016.Calculate the number of days’ sales in inventory for 2016, using year-end inventories.Calculate the accounts receivable turnover for 2016.Calculate the number of days’ sales in accounts receivable for 2016, using year-end accounts receivable.

Sheridan Company provides the following information for the month ended October 31, 2022: sales on credit $366,100, cash sales $108,300, sales discounts $5,100, and sales returns and allowances $12,900.Prepare the sales section of the income statement based on this information.

The adjusted trial balance of Bramble Corp. shows these data pertaining to sales at the end of its fiscal year, October 31, 2022: Sales Revenue $908,400; Freight-Out $12,800; Sales Returns and Allowances $20,600; and Sales Discounts $15,100.Prepare the sales section of the income statement. Bramble Corp.Income Statement (Partial)choose the accounting period For the Month Ended October 31, 2022October 31, 2022For the Year Ended October 31, 2022 select an opening section name Retained Earnings, November 1, 2021Net Income / (Loss)Retained Earnings, October 31, 2022Total RevenuesSalesTotal ExpensesNet SalesExpensesDividends enter an income statement item $enter a dollar amount select between addition and deduction AddLess : enter an income statement item $enter a dollar amount enter an income statement item enter a dollar amount enter a subtotal of the two previous amounts select a…

Answer 2

Question

Chapter 5, Problem 5.2SP

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-1:

To calculate: the inventory turnover and days sales in inventory.

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-2:

To indicate: the company’s performance in comparison with its competitors.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 5.2SP

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-1:

To calculate: the inventory turnover and days sales in inventory.

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-2:

To indicate: the company’s performance in comparison with its competitors.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 5.2SP

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-1:

To calculate: the inventory turnover and days sales in inventory.

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-2:

To indicate: the company’s performance in comparison with its competitors.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 5.2SP

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-1:

To calculate: the inventory turnover and days sales in inventory.

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-2:

To indicate: the company’s performance in comparison with its competitors.

Answer 6

Chapter 5, Problem 5.2SP

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-1:

To calculate: the inventory turnover and days sales in inventory.

Answer 7

Chapter 5, Problem 5.2SP

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-1:

To calculate: the inventory turnover and days sales in inventory.

Answer 8

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-2:

To indicate: the company’s performance in comparison with its competitors.

Answer 9

Summary Introduction

Concept introduction:

Inventory Turnover Ratio: Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. The formula of the Inventory Turnover Ratio is as follows:

Inventory Turnover Ratio=Cost of goods soldAverage inventory

Note: Average inventory is calculated with the help of following formula:

Average inventory=(Beginning inventory + Ending inventory)2

Day’s sales in inventory: Days sales in inventory represent the number of days the inventory waits for the sale. It is calculated using the following formula:

Day Sales in Inventory = Inventory *365Cost of Goods Sold

Requirement-2:

To indicate: the company’s performance in comparison with its competitors.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ Ch. 5 - Why are incidental costs sometimes ignored in...Ch. 5 - Prob. 4DQ Ch. 5 - Prob. 5DQ Ch. 5 - Prob. 6DQ Ch. 5 - Prob. 7DQ Ch. 5 - Prob. 8DQ Ch. 5 - Prob. 9DQ Ch. 5 - Prob. 10DQ

Solution Summary: The author explains that Inventory Turnover Ratio is calculated by dividing the Cost of goods sold by Average inventory. Day's sales in inventory represent the number of days the inventory waits for the sale.

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