Question

At the start of the year, Sandy's Flowers had inventory worth $587,200 at retail. On December...

At the start of the year, Sandy's Flowers had inventory worth $587,200 at retail. On December 31, the retail value of the inventory was $137,700. If annual sales amounted to $2,899,600 find the inventory turnover at retail for the year. (Round your answer to the nearest tenth)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Inventory Turnover for the year

Inventory Turnover Ratio is calculated by using the following formula

Inventory Turnover Ratio = Annual Sales / Average Inventory

Average Inventory = [Inventory at the beginning + Inventory at the year-end] / 2

= [$587,200 + $137700] / 2

= $724,900 / 2

= $362,450

Therefore, the Inventory Turnover Ratio = Annual Sales / Average Inventory

= $28,99,600 / $362,450

= 8.0 Times

“Hence, the Inventory Turnover for the year would be 8.0 Times”

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: The inventory at January 1, 2019, had a retail value of $31,000 and a cost of $11,000 based on the conventional retail method. Transactions during 2019 were as follows: Cost Retail Gross purchases $ 570,000 $ 953,000 Purchase returns 6,000 4,000 Purchase discounts 5,000 Gross sales 958,000 Sales returns 5,000 Employee discounts 3,000 Freight-in 20,000 Net markups 20,000 Net markdowns 4,000 Sales...
1.Kaiser Co. counted inventory on December 31, 2019 and had $2,490,000 worth of inventory on their...
1.Kaiser Co. counted inventory on December 31, 2019 and had $2,490,000 worth of inventory on their books. Their records indicate that they purchased $18,675,000 worth of inventory during the year and that they sold $20,542,500 worth of inventory during the year. How much inventory did they have on January 1, 2019? $622,500 $2,490,000 $4,357,500 $18,675,000 2. The balance in the income summary account before it is closed should equal which of the following values? Beginning Total Assets. Net Income for...
Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending...
Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending inventories. The following data has been summarized for December 31, 2018: Cost Retail Inventory, January 1 $ 125,000 $ 174,000 Purchases 360,620 544,500 Net markups 14,700 Net markdowns 8,900 Net sales 531,000 Required: Estimate the LIFO cost of ending inventory. Assume stable retail prices during the period. (Do not round your "Cost-to-retail percentage" and round your final answer to the nearest whole number.)
Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending...
Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending inventories. The following data has been summarized for December 31, 2021: Cost Retail Inventory, January 1 $ 109,000 $ 158,000 Purchases 323,280 536,500 Net markups 13,900 Net markdowns 8,100 Net sales 515,000 Required: Estimate the LIFO cost of ending inventory. Assume stable retail prices during the period. (Do not round your "Cost-to-retail percentage" and round your final answer to the nearest whole number.)
Bragg adopted the dollar-value LIFO retail inventory method on January 1, 2016. The following information for...
Bragg adopted the dollar-value LIFO retail inventory method on January 1, 2016. The following information for 2016 was taken from the company's records: Cost Retail Sales $189,000 Net markups 6,000 Inventory, January 1, 2016 $ 21,000 30,000 Purchases 147,000 200,000 Net markdowns 10,700 The price index on January 1, 2016, was 100. On December 31, 2016, it was 110. Round cost/retail percentages to the nearest whole percent if necessary. Required: Compute the inventory value for December 31, 2016.
Crane Variety Store uses the LIFO retail inventory method. Information relating to the computation of the...
Crane Variety Store uses the LIFO retail inventory method. Information relating to the computation of the inventory at December 31, 2021, follows:     Cost    Retail Inventory, January 1, 2021 $148,000 $220,000 Purchases 484,000 738,000 Freight-in 84,000 Sales 751,000 Net markups 167,500 Net markdowns 66,000 Assuming that there was no change in the price index during the year, compute the inventory at December 31, 2021, using the LIFO retail inventory method. (Round ratio to 2 decimal places, e.g. 75.35% and...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available...
Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows: a) The inventory at January 1, 2016, had a retail value of $37,000 and a cost of $30,090 based on the conventional retail method. Cost Retail Gross purchases $ 177,030 $ 410,000 Purchase returns 5,700 28,000 Purchase discounts 4,200 Gross sales 345,000 Sales returns 5,500 Employee discounts 3,000 Freight-in 29,500 Net markups 17,000 Net markdowns 28,000
Wildhorse Inc. had beginning inventory of $26,400 at cost and $44,000 at retail. Net purchases were...
Wildhorse Inc. had beginning inventory of $26,400 at cost and $44,000 at retail. Net purchases were $264,000 at cost and $374,000 at retail. Net markups were $22,000, net markdowns were $15,400, and sales revenue was $323,400. Assume the price level increased from 100 at the beginning of the year to 115 at year-end. Compute ending inventory at cost using the dollar-value LIFO retail method. (Round ratios for computational purposes to 1 decimal place, e.g. 78.7% and final answer to 0...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT