User Account

All Pages

Why is cost of goods sold used as the numerator

Assignment Help Accounting Basics
Reference no: EM131116399

1. In calculating inventory turnover, why is cost of goods sold used as the numerator? As the inventory turnover increases, what increasing risk does the business assume? 

Reference no: EM131116399

Questions Cloud

Where political risk has recently increased : Hudson Co., a U.S. firm, has a subsidiary in Mexico, where political risk has recently increased. Hudson's best guess of its future peso cash flows to be received has not changed. However, its valuation has declined as a result of the increase in pol..
List the various disadvantages that may discourage : As an overall review of this chapter, identify possible reasons for growth in international business. Then, list the various disadvantages that may discourage international business.
What factors cause some firms to become more internationaliz : a. What factors cause some firms to become more internationalized than others? b. Offer your opinion on why the Internet may result in more international business.
What is the relationship of the asset turnover ratio : What is the relationship of the asset turnover ratio to the rate of return on assets?
Why is cost of goods sold used as the numerator : In calculating inventory turnover, why is cost of goods sold used as the numerator? As the inventory turnover increases, what increasing risk does the business assume?
Do you think the acquisition of a foreign firm will result : Do you think the acquisition of a foreign firm or licensing will result in greater growth for an MNC? Which alternative is likely to have more risk? Describe a scenario in which the size of a corporation is not affected by access to international opp..
What is the value of these two types of analyses : Distinguish between ratio analysis and percentage analysis relative to the interpretation of financial statements. What is the value of these two types of analyses?
Who is a history major and who has not had any college : He asks you what he needs to know to interpret and to evaluate the financial statement data that he is receiving. What would you tell him?
Explain how the existence of imperfect markets has led : Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets. If perfect markets existed, would wages, prices, and interest rates among countries be more similar or less similar than under conditions ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Annual amount of depreciation on the equipment

Hamilton Tool and Die Company purchased $72,000 of equipment with an estimated service life of 4 years. The equipment will be worth $4,000 at the end of its life. The annual amount of depreciation on this equipment is:

  Calculate the funding levels and capital gains

Calculate the funding levels and capital gains experienced by Coca-Cola and PepsiCo in their respective pension funds.

  Shares of stock outstanding

Bettis Bus Company had earnings after taxes of $ 600,000 in the year 2009 with 300,000 shares of stock outstanding. On January 1, 2010, the firm issued 40,000 new shares, Because of the proceeds from these new shares and other operating improvemen..

  Prepare entries in journal form to record the admission

Prepare entries in journal form to record the admission of Henry to the partnership under the ccnditions

  Calculate basic earnings per share

Calculate diluted earnings per share for 2013 and the incremental EPS of the preferred stock and convertible bonds. If required, round your answers to the nearest cent.

  Do lowes uses differ significantly from the home depots

Which of the two basic reporting approaches for the cash flows from operating activities did Lowes use? Is this the same as what The Home Depot used? What amount of cash did Lowes receive from issuing long- term debt during the year ended January 31,..

  Set up a trading account

From the accompanying data, set up a Trading Account of M/s. ABC Traders for the year finished March 31, 2009:

  Discover motor co uses a standard cost system to collect

discover motor co. uses a standard cost system to collect costs related to the production of its toothpick motors. the

  My scenario

My scenario

  Hoosier company manufactures and sells a single product the

hoosier company manufactures and sells a single product. the following costs were incurred during the companys first

  Describe the it control procedures that should exist in

the family support center is a small charitable organization. it has only four full-time employees two staff an

  What amount will be in the investment fund

Vannoy Corporation will invest $30,000 every January 1st for the next six years (2012 - 2017). If Wagner will earn 12% on the investment, what amount will be in the investment fund on December 31, 2017?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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