The following data are from the income statements of Haskin Company.    Year  2017 2016 Sales revenue  $6,420,000 $6,420,000 Beginning inventory 940,000 860,000 Purchases  4,340,000 4,661,000 Ending inventory 1,020,000 940,000 Answer the following questions: Compute for each year (1) the inventory turnover and (2) the days in inventory? What conclusions concerning the management of the inventory can be drawn  from these data?

Q: The following information is presented for Bramble Corporation. The net income errors in ending…

A: Inventory management involves keeping track of the goods, components, and raw materials that a…

Q: Yellow Bell Company started operations on March 2016. The following information were provided in…

A: The prior period error is the error that is related to previous year and it find in current year.…

Q: Gordon Company started operations on January 1, 2015, and has used the FIFO method of inventory…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Sunland Enterprises reported the following information for 2014: Beginning inventory   $30,080…

A: Solution:- 1)calculation of the gross profit margin as follows under:- Gross profit =Net sales-Cost…

Q: Miranda Company reported the following amounts on its 2017 income statement: Purchases, P100,000;…

A: Cost of goods sold is actual cost of goods that are being sold to the customers. It includes…

Q: Suppose this information is available for PepsiCo, Inc. for 2015, 2016, and 2017. (in millions)…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: During 2017, Williamson Company changed from FIFO to weighted-average inventory pricing. Pretax…

A:

Q: The following inventory valuation errors have been discovered for Knox Corporation: The 2015…

A: Inventory errors: It refers to the errors that result in overstatement or understatement of ending…

Q: Over a four-year period, Jackie Corporation reported the following series of gross profits.…

A: Gross profit: It can be defined as the difference between the cost of goods sold and the net sales…

Q: Cambi Company began operations on January 1, 2016. In the second quarter of 2017, it adopted the…

A:

Q: During 2021, Rogue Corporation reported net sales of $600,000. Inventory at both the beginning and…

A:

Q: The consolidated balance sheets of Gap Inc. included merchandise inventory in the amount of $1,625…

A: Cost of goods sold refers to the expenses involved in the production of goods and services which are…

Q: Following are the account balances from Connery Company's statement of comprehensive income:…

A: Cost of goods sold is also known as cost of sales for the business. It means actual cost of goods…

Q: In its 2019 annual report, Marin, Inc. reported inventory of $ 670 million on January 31, 2020, and…

A: Average inventory = (Beginning inventory + ending inventory)/2 = (670+546)/2 = $608 million

Q: The financial statements of ConAgra Foods, Inc.’s 2017 annual report disclose the following…

A:

Q: What is the inventory turnover ratio for Fair Isle Inc. for 2020 if the inventory at the beginning…

A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…

Q: Shockley Co. reported the following amounts in its financial statements: (a) Cost of goods sold (b)…

A: Lets understand the basics. When there is inventory overstated or understated then there is impact…

Q: The following information is available for Splish Brothers Inc. for three recent fiscal years.…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: BE18-12 The following data are from the income statements of Haskin Company. 2017 2016 Sales revenue…

A: The inventory turnover ratio is calculated by dividing the purchases or cost of goods sold by the…

Q: Milton Company reported inventory of $60,000 at the beginning of 2014. During the year, it purchased…

A: Cost of Goods Sold: The term "cost of goods sold" (COGS) refers to the direct expenses that are…

Q: The following information is available for the Brown Company for 2016: Gross profit  $30,000 Net…

A: Inventory: It refers to the items held by an organization which were in various forms like raw…

Q: In its 2018 annual report, Gap Inc. reported inventory of $1,997 million on January 31, 2018, and…

A: Solution: Inventory turnover is also known as activity ratio which is used to calculate the…

Q: The financial statements of ConAgra Foods, Inc.'s 2017 annual report disclose the following…

A: The ratio analysis is performed to analyze the financial statements of the business for profit…

Q: Inventory turnover and number of days' sales in inventory Financial statement data for years ending…

A: Lets understand the basics. Inventory turnover ratio indicates how many time inventory turns into…

Q: The Northern Company installed a new inventory management system at the beginning of 2018. Shown…

A: Inventory turnover ratio measures the number of times a company has sold its inventory. The ratio…

Q: The inventory value for the financial statements of Z for the year ended 31st March 2022 was based…

A:

Q: In its 2015 annual report, Gap Inc. reported inventory of $1,889 million on January 31, 2015, and…

A: Workings: Inventor turnover = Cost of Goods sold / Average inventory.

Q: (Change in Principle—Inventory—Periodic) The management of Utrillo Instrument Company had concluded,…

A: Balance sheet is statement of assets and liabilities as on a particular date

Q: Ivanhoe Inc. reported inventory at the beginning of the current year of $260000 and at the end of…

A: Average inventory = (Beginning inventory + Ending inventory) / 2 Average inventory = ($260,000 +…

Q: The following information is taken from Allen Corporation's fiscal 2016 annual report. Selected…

A: Cost of goods sold = Opening balance of inventory + Purchases during the period - Closing balance of…

Q: The following data were taken from the income statements of MetronixCorporation. Compute the…

A: Calculation of inventory turn-over ratios for each year: Excel workings:

Q: Selected information from the operating records of Kay Company is as follows:  Net sales  P…

A: Inventory Turnover Formula  Inventory Turnover =Cost of goods soldAverage Inventory Average…

Q: Selected financial statement data for Schmitzer Inc. is shown below: 2016 2015 Balance sheet:…

A: d

Q: Based on our understanding of inventory cost flows, and given the information listed below for the…

A: The correct answer is option (e).

Q: Following are the account balances from Samuel Company's statement of comprehensive income:…

A: Cost of Goods Available for sale: It is the total cost of  opening finished goods  in an accounting…

Q: Selected financial statement data for Schmitzer Inc. is shown below:2018 2017Balance…

A: The first step in above computation is to arrive at the amount of Average invevntory. The Average…

Q: Sandhill Inc. reported inventory at the beginning of the current year of $320000 and at the end of…

A: Average inventory = (beginning inventory + ending inventory) /2 = (320000 + 371000) /2 = $345500

Q: The following information is available for Sandhill Co. for three recent fiscal years.     2017…

A: Inventory turnover: This is the ratio which analyzes the number of times inventory is sold during…

Q: For the period from 2016 through 2016, the Charlie Company had net sales of $500,000 and a gross…

A: THE GROSS PROFIT METHOD IS A WAY OF CALCULATING THE AMOUNT OF ENDING INVENTORY IN A REPORTING PERIOD…

Q: The following information is available for Canadian Tire Corporation (in $ millions): 2018 2017 2016…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning…

Q: In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020,…

A: Inventory turnover is an accounting turnover ratio that determines the number of times inventory is…

Q: Data below for the year ended December 31, 2021, relates to Houdini Inc. Houdini started business…

A: Estimated ending inventory is calculated by deducting the net sales from goods available for sale.

Q: Jinchuriki Inc.'s Financial Statement for years 2014-2015. Compute of the Average Sales Period/…

A: Ratios are calculated to determine the financial position of the company so that it would be easy to…

Q: The following data were taken from the financial records of Sunland Company. 2022 2021 Net Sales…

A: Average inventory = ( Opening inventory + Closing inventory ) ÷ 2                       Year 2021 =…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.