kynet Unlimited is an innovator in the new industry of neural-networked computer nanufacturing. They employ about 40 employees in their automated factories. The ollowing table shows a summary of data extracted from their financial accounts at he end of accounting year 2021. ummary of Financial Account data 2021 (in thousands dollars) Sales Revenue 343 Profit before tax 87 Cost of goods sold 218 Capital employed 1,047 Starting inventory 26 Ending inventory 33 n 2020, the company's inventory turnover ratio was 7.28. What is their Inventory urnover ratio for the year 2021? ote: write the number with at most 2 decimal places (eg. 95.17)

kynet Unlimited is an innovator in the new industry of neural-networked computer nanufacturing. They employ about 40 employees in their automated factories. The ollowing table shows a summary of data extracted from their financial accounts at he end of accounting year 2021. ummary of Financial Account data 2021 (in thousands dollars) Sales Revenue 343 Profit before tax 87 Cost of goods sold 218 Capital employed 1,047 Starting inventory 26 Ending inventory 33 n 2020, the company's inventory turnover ratio was 7.28. What is their Inventory urnover ratio for the year 2021? ote: write the number with at most 2 decimal places (eg. 95.17)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

hades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data at June 30, 2018:Inventory 1/7/2017 30/6/2018Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $358,000 $213,000Finished Goods $975,400 $585,000Other information:Sales Revenue $5,675,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Hiring of Specialized Manufacturing Equipment 68,000Insurance on Plant & Equipment 112,000Delivery Vehicle Drivers’ Wages 189,000Depreciation: Delivery Vehicle 53,850Property Taxes 2 240,000Administrative Wages & Salaries 850,750Advertising Expenses 1% of Sales Revenue1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.2 The property taxes…
Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data at June 30, 2018:Inventory 1/7/2017 30/6/2018Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $358,000 $213,000Finished Goods $975,400 $585,000Other information:Sales Revenue $5,675,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Hiring of Specialized Manufacturing Equipment 68,000Insurance on Plant & Equipment 112,000Delivery Vehicle Drivers’ Wages 189,000Depreciation: Delivery Vehicle 53,850Property Taxes 2 240,000Administrative Wages & Salaries 850,750Advertising Expenses 1% of Sales Revenue1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.2 The property taxes…
Shades of the Caribbean design and manufacture sun-glasses for the tourism sector. The accounting records of the business reflect the following data at June 30, 2018:Inventory 1/7/2017 30/6/2018Raw Materials $230,000 $260,000Factory Supplies $35,000 $24,000Work in Progress $358,000 $213,000Finished Goods $975,400 $585,000Other information:Sales Revenue $5,675,000Factory Supplies Purchased 64,000Direct Factory Labor 792,000Raw Materials Purchased 560,000Plant janitorial service 37,000Depreciation: Plant & Equipment 186,000Total Utilities 1 481,250Production Supervisor’s Salary 450,000Hiring of Specialized Manufacturing Equipment 68,000Insurance on Plant & Equipment 112,000Delivery Vehicle Drivers’ Wages 189,000Depreciation: Delivery Vehicle 53,850Property Taxes 2 240,000Administrative Wages & Salaries 850,750Advertising Expenses 1% of Sales Revenue1 Of the total utilities, 80% relates to manufacturing and 20% relates to general and administrative costs.2 The property taxes…
Inverness Steel Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products. The company's income statement for the 2021 fiscal year reported the following information ($ in millions): Sales $ 6,255 Cost of goods sold 5,190 The company's balance sheets for 2021 and 2020 included the following information ($ in millions): 2021 2020 Current assets: Accounts receivable, net $ 703 $ 583 Inventories 880 808 The statement of cash flows reported bad debt expense for 2021 of $8 million. The summary of significant accounting policies included the following notes ($ in millions): Accounts Receivable (in part)The allowance for uncollectible accounts was $10 and $7 at December 31, 2021 and 2020, respectively. All sales are on credit. InventoriesInventories are valued at the lower of cost or market. The cost of the majority of inventories is measured using the last-in, first-out (LIFO)…
Gopaul Electronics designs and manufactures specialized switches for the telecommunications industry. Theaccounting records of the business reflect the following data at December 31, 2023:Inventory 1/1/2023 31/12/2023Raw Materials $260,000 $230,000Work In Progress $333,800 $218,800Finished Goods $1,075,200 $615,000Other information:Sales Revenue $5,765,000Factory supplies 45,000Direct Factory Labor 735,000Special Design Cost 15,000Raw Materials Purchased 540,000Plant janitorial service 52,000Depreciation: Plant & Equipment 165,000Plant Utilities 385,000Plant supervisor’s salary 480,000Property Taxes 1 300,000R & D for Graphic Designs 70,500Office Utilities 165,000Insurance on Plant & Equipment 120,000Delivery truck driver’s wages 125,000Depreciation: Delivery truck 52,000Administrative Wages & Salaries 850,150Sales Commission 97,6501 The property taxes should be shared: 60% manufacturing & 40% general & administrative costs.Required:a) Calculate the raw material…
The Clothes Clutch, a retail clothier, has had average sales of $400,000 for the last five years, 2018-2022. The firm's total assets at the end of 2020 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2022 2021 2020 2019 2018 Current Ratio 2.80 2.43 2.36 2.10 2.00 Acid Test Ratio 2.03 1.93 1.82 1.61 1.47 Days' Sales in Receivables 61 58 54 42 35 Merchandise Inventory Turnover 4.20 4.10 4.10 3.90 3.70 Debt Ratio 0.48 0.50 0.49 0.47 0.47 Times Interest Earned 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales 1.46 1.23 1.12 1.06 1.00 Net Income as a Percent of 1998 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin 38.5% 38.8% 38.9% 40.0% 39.7% Operating Expenses to Net Sales 11.4% 11.3% 11.5% 11.4% 11.7% Net Profit Margin 7.6% 8.6% 8.9% 9.4% 9.3% Return on Total Assets…
The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,| 2019-2015. The firm's total assets at the end of 2017 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2019 2018 2017 2016 2015 Current Ratio 2.80 2.43 2.36 2.10 2.00 Acid Test Ratio 2.03 1.93 1.82 1.61 1.47 Days' Sales in Receivables Merchandise Inventory Turnover Debt Ratio 61 58 54 42 35 4.20 4.10 4.10 3.90 3.70 0.48 0.50 0.49 0.47 0.47 Times Interest Earned 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales 1.46 1.23 1.12 1.06 1.00 Net Income as a Percent of 1996 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin Operating Expenses to Net Sales Net Profit Margin 38.5% 38.8% 38.9% 40.0% 39.7% 11.4% 11.3% 11.5% 11.4% 11.7% 7.6% 8.6% 8.9% 9.4% 9.3% Return on Total Assets 9.4% 9.6% 9.6% 10.0% 10.7% Required: a. Explain the trend in liquidity.…
Sally Resto's branch submitted the following data for 2021, the branches' first year of operation: Sales of $20,350 Debit balance for Shipment from home office $18,612 Operating Expenses $1,800 Credit balance for Home Office account $4,800 Shipment to the branch are billed at cost. The ending inventory of the branch was $2,500. What is the correct balance of Branch Account to be presented in the home office books?
Packaging Corporation of America produces containerboard and white papers. WestRock Co. manufactures paper products and corrugated products. Financial statement data for these two companies follow: Packaging Corporation of America ($ in millions of dollars) 2015 2016 2017 2018 Sales $5,779.0 689.2 $6,444.9 $7,014.6 Accounts receivable at December 31 $636.5 830.7 901.9 WestRock Co. ($ in millions of dollars) 2015 2016 2017 2018 $14,171.8 1,592.2 $14,859.7 1,886.8 $16,285.1 2,010.7 Sales Accounts receivable at December 31 $1,575.4 Source: Computed from amounts in the Packaging Corporation of America and WestRock Co. Form 10-Ks for 2014- 2018. In 2015 and 2016, WestRock was known as WRKC.., Inc. Required: 1. Determine the receivables turnover ratios for both companies for 2016, 2017, and 2018. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place.) 2. Which company collected its accounts receivable more quickly in 2018?
The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,| 2019-2015. The firm's total assets at the end of 2017 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2019 2018 2017 2016 2015 Current Ratio 2.80 2.43 2.36 2.10 2.00 Acid Test Ratio 2.03 1.93 1.82 1.61 1.47 Days' Sales in Receivables Merchandise Inventory Turnover Debt Ratio 61 58 54 42 35 4.20 4.10 4.10 3.90 3.70 0.48 0.50 0.49 0.47 0.47 Times Interest Earned 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales 1.46 1.23 1.12 1.06 1.00 Net Income as a Percent of 1996 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin Operating Expenses to Net Sales Net Profit Margin 38.5% 38.8% 38.9% 40.0% 39.7% 11.4% 11.3% 11.5% 11.4% 11.7% 7.6% 8.6% 8.9% 9.4% 9.3% Return on Total Assets 9.4% 9.6% 9.6% 10.0% 10.7% Required: Have Cena and Lesnar utilized its…
Show the solution in good accounting form Mary Corporation has a branch in Caloocan. During 2021, the home office shipped to the branch supplies costing P156,000 at a billed price of 30% above cost. The inventories of supplies at the branch were as follows: January 1, 2021 P110,000; December 31, 2021 128,000. On December 31, 2021, the home office holds inventories of P112,800 which includes P11,500 held on consignment and which excludes P5,000 inventories out on consignment. How much is the inventories in a combined balanced sheet as of December 31, 2021?
Cebu branch of Nimbus Company submitted the following data for 2021, its first year of operation: Sales 203, 500 Shipments from home office 186, 120 Operating expenses 18, 755 Home Office Current 48. 125 Shipments to the branch are billed at cost. The December 31 inventory of the branch was P25, 245. What is the correct balance on December 31, 2021 of the Branch Current account per home office books?