Financial Accounting: Business Process Approach, Student Value Edition Plus New Mylab Accounting With Pearson Etext -- Access Card Package (3rd Edition)
3rd Edition
ISBN: 9780132962667
Author: Jane L. Reimers
Publisher: PEARSON
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Chapter 5B, Problem 1SEA
Estimate inventory. (LO 9). Fantasy Games, Inc., wants to estimate its ending inventory balance for its quarterly financial statements for the first quarter of the year. Given the following, what is your best estimate?
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Bobaflex Corporation has endinginventory of $527,156 and cost of goods sold for the year just ended was$8,543,132. What is the inventory turnover? The days’ sales in inventory?How long on average did a unit of inventory sit on the shelf before it wassold?
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What is the inventory turnover ratio for Fair Isle Inc. for 2020 if the inventory at the beginning of the year was $210,500 and at the end of the year was $195,500 and during the year the company had net sales of $1,243,750 which had a corresponding cost of sales of $995,000?
a.) 2.5b.) 4.9c.) 5.0d.) 6.1
Chapter 5B Solutions
Financial Accounting: Business Process Approach, Student Value Edition Plus New Mylab Accounting With Pearson Etext -- Access Card Package (3rd Edition)
Ch. 5B - Suppose Base Company began May with inventory of...Ch. 5B - Estimate inventory. (LO 9). Fantasy Games, Inc.,...Ch. 5B - (Estimate inventory. (LO 9). Knick-Knacks wants to...Ch. 5B - Estimate inventory. (LO 9). The following...Ch. 5B - Estimate inventory. (LO 9). The records of Florida...Ch. 5B - Estimate inventory. (LO 9). Hines Fruit Corp....Ch. 5B - Estimate inventory. (LO 9). Carries Cotton Candy...
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- The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $788,400 $827,800 Beginning inventories 57,564 39,692 Cost of goods sold 394,200 459,900 Ending inventories 52,164 57,564 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 days b. The inventory position of the business has improveddeteriorated . The inventory turnover has increaseddecreased , while the number of days' sales in inventory has increaseddecreased .arrow_forwardA recent annual report of Gateway $2000 , Inc. , shows : cost of goods sold. $4,072; inventory at the beginning of the year, $225; and inventory at the end of the year. $278. (These dollar amounts are in millions) . Compute the inventory turnover rate for the year ( round to the nearest tenth) . Using the assumption of 365 days in a year , compute the number of days required for the pany to sell the amount of its average inventory ( round to the nearest day). Assume that an average of 30 days is required for Gateway to collect its accounts receivable What is the length of Gateway's operating cycle?arrow_forwardThe Quartz Company has been taking a physical inventory every quarter in order to prepare its quarterly financial statement. The management is interested to know if they have some alternative to find an efficient way of determining the cost of ending inventory for its quarterly reports. You have been given the following information abased on which you are supposed to suggest the management something that will fulfil the requirements. The Quartz Company Partial Income Statement For the year ended Dec 31, 2020 Net Sales $655,000 CGS: Beginning Inventory 80000 Purchases, Net 575000 COGAS…arrow_forward
- Rizza Co. has an average age of inventory equal to 25 days. If its end of year inventory level is P8,500, then what does that imply for the cost of goods sold during the year? (round to the nearest peso)arrow_forwardFreedman Company estimates that sales this year of $12,000 will be returned next year and customers will be granted a full refund. Which of the following journal entries would Freedman Company record as part of its year-end adjustments assuming it uses the perpetual inventory system? a.Debit Estimated Returns Inventory for $12,000 and credit Income Summary for $12,000 b.Debit Sales Returns and Allowances for $12,000 and credit Cost of Goods Sold for $12,000 c.Debit Inventory Short and Over for $12,000 and credit Merchandise Inventory for $12,000 d.Debit Sales Returns and Allowances for $12,000 and credit Customer Refunds Payable for $12,000arrow_forwardVaughn Manufacturing had January 1 inventory of $295000 when it adopted dollar-value LIFO. During the year, purchases were $1870000 and sales were $2960000. December 31 inventory at year-end prices was $390880, and the price index was 112.What is Vaughn Manufacturing’s ending inventory?arrow_forward
- Would the quarter total for desired ending inventory be 16,800 or the total of all 3 months? The same question for begining inventory, would it be 42,000 or 21,000?arrow_forwardThe King Corporation has ending inventory of $386,735, and cost of goods sold for the year just ended was $4,981,315. What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardA7X corporation has ending inventory of $705273 and cost of goods sold for the year just ended was $8,135,165 a. What is the inventory turnover? Inventory turnover _______ times b. What is the days sales in inventory Days sales in inventory______ days c. How long on average did a unit of inventory sit on the shelf before it was sold? Days on shelf______ daysarrow_forward
- The following data were extracted from the income statement of Keever Inc.:Current YearPrevious YearSales$919,800$959,200Beginning inventories64,46254,430Cost of goods sold459,900532,900Ending inventories58,26264,462a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year.Current YearPrevious Year1. Inventory turnover 2. Number of days' sales in inventory days daysarrow_forwardBased on the following data for the current year, what is the number of days' sales in inventory? Assume 365 days a year. Sales on account during year $512,919 Cost of merchandise sold during year 196,085 Accounts receivable, beginning of year 41,748 Accounts receivable, end of year 52,731 Merchandise inventory, beginning of year 33,126 Merchandise inventory, end of year 41,076 Round your intermediate calculations to the nearest dollar. When required, round your answer to the whole number. a.138 days b.76 days c.62 days d.69 daysarrow_forwardThe following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $1,095,000 $1,143,200 Beginning inventories 60,050 52,050 Cost of goods sold 547,500 635,100 Ending inventories 54,250 60,050 a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year. Current Year Previous Year 1. Inventory turnover fill in the blank 1 fill in the blank 2 2. Number of days' sales in inventory fill in the blank 3 days fill in the blank 4 daysarrow_forward
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