Average investment in inventory

Assignment Help Accounting Basics
Reference no: EM13159961

Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case.

a. The firm has sales of $600,000, a gross profit margin of 10 percent, and an inventory turnover ratio of 6.

b. The firm has a cost-of-goods-sold figure of $480,000 and an average age of inventory of 40 days.

c. The firm has a cost-of-goods-sold figure of $1.15 million and an inventory turnover rate of 5.

d. The firm has a sales figure of $25 million, a gross profit margin of 14 percent, and an average age of inventory of 45 days.

Reference no: EM13159961

Questions Cloud

Elements of financial statements interact with another : In what ways do the elements of the financial statements interact with one another? How might changing one of the financial statements affect the other financial statements?
Use regression analysis definition : Problem 3.  For the following set of points, calculate the value of 'r' and infer how are the points correlated. Use regression analysis definition or 'r' using covariance (x, y), var(x) and var(y).
Difference between relative ethics and absolute ethics : Define ethics. What is the difference between relative ethics and absolute ethics? Under what circumstances would relative ethics be used? Does Satan have ethics?
Identify the oh proton in the nmr spectrum : An unknown is believed to be an alcohol because the IR spectrum showed broad absorption at 3200-3500 cm-1 and no absorption in the 1700-1750 cm-1 region.
Average investment in inventory : Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case.
What is the new profit maximizing output level : What is the new profit maximizing output level and how many workers are hired at this level
Compare and contrast the classical and balanced : Compare and contrast the"Classical" and "Balanced" schools ofthought on the subject of genetic variation in natural populations. How would theresearch programs of the two schools have influenced their perceptions about the amountof genetic variati..
Compute amount of coaches and carriages net income : Compute the amount of Coaches and Carriages' net income (or loss) for 2009 assuming that no dividends were paid and the owners made no additional contributions during the year.
How much h2o is needed : Acetylene gas (C2H2) is produced as a result of the reaction CaC2+2H2O-->C2H2+Ca(OH)2 If 16g of CaC2 are consumed in this reaction, how much H2O is needed? answer in units of mol.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the minimum acceptable price

Jeremy's Desks is approached by Mr. Harry Hood, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. The following per unit data apply for sales to regular customers.

  Monitoring and controlling business reporting

Explain the role of the FASB in monitoring and controlling business reporting and accounting practices in the modern organization.

  What is the total conversion cost

In the manufacture of 10,000 units of a product, direct materials cost incurred was $145,800, direct labor cost incurred was $82,000, and applied factory overhead was $45,500. What is the total conversion cost?

  Consolidated financial statements of a us parent

Are you familiar with any foreign income tax planning strategies that are utilized by some multinational corporations? Do you know of any of the intricacies of how foreign income taxes impact the consolidated financial statements of a US parent?

  Annual manufacturing overhead cost budget

The following information was taken from the annual manufacturing overhead cost budget of Coen Company.

  What is the balance in the investment

Significant influence over Harrison is achieved by this acquisition. Harrison distributed a dividend of $2 per share during the year and reported net income of $560,000. What is the balance in the Investment in Harrison account found in the financ..

  Entry to assign overhead to production

At Ace Company, overhead is assigned to production departments at the rate of $5 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly Department. Prepare the entry to assign overhead to producti..

  Concept of change in reporting entity

Which of the following describes a change in reporting entity?

  Compute the amount clydesdale should report

Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000 at December 31, 2012. This difference will reverse as follows: 2013, $42,000; 2014, $244,000; and 2015, $294,000.

  Examine the legal liability

Examine the legal liability an accounting professional has, including how a CPA is protected.

  Basics of conversion cost per equivalent unit

If the costs for direct materials, direct labor, and factory overhead were $522,200, $82,700, and $45,300, respectively, for 16,000 equivalent units of production, the conversion cost per equivalent unit was $8.00.

  Expecting annual overhead costs

If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000, then:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd