Question

Tater and Pepper Corp. reported sales for 2018 of $27 million. Tater and Pepper listed $6.0...

Tater and Pepper Corp. reported sales for 2018 of $27 million. Tater and Pepper listed $6.0 million of inventory on its balance sheet.

How many days did Tater and Pepper’s inventory stay on the premises? (Use 365 days a year. Round your answer to 2 decimal places.)

How many times per year did Tater and Pepper’s inventory turn over? (Round your answer to 2 decimal places.)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Calculate number of days inventory stay in premises as shown below:
No of days Inventory/Sales*365 days
No of days ($6 million/$27 million)*365
No of days 81.11 days
Thus, inventory stayed in premises for 81.11 days
Calculate inventory turnover
Inventory turnover Sales/Inventory
Inventory turnover $27 million/$6 million
Inventory turnover 4.50
Thus, 4.5 times per year inventory was turn over
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
Tater and Pepper Corp. reported free cash flows for 2018 of $57.1 million and investment in...
Tater and Pepper Corp. reported free cash flows for 2018 of $57.1 million and investment in operating capital of $40.1 million. Tater and Pepper incurred $15.4 million in depreciation expense and paid $20.7 million in taxes on EBIT in 2018. Calculate Tater and Pepper’s 2018 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.)
1.) Williams & Sons last year reported sales of $32 million, cost of goods sold (COGS)...
1.) Williams & Sons last year reported sales of $32 million, cost of goods sold (COGS) of $24 million, and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Enter your answer...
Parramore Corp has $15 million of sales, $3 million of inventories, $4 million of receivables, and...
Parramore Corp has $15 million of sales, $3 million of inventories, $4 million of receivables, and $3 million of payables. Its cost of goods sold is 85% of sales, and it finances working capital with bank loans at an 7% rate. Assume 365 days in year for your calculations. Do not round intermediate steps. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places. days If Parramore could lower its inventories...
In 2018, a football player signed a contract reported to be worth $75.3 million. The contract...
In 2018, a football player signed a contract reported to be worth $75.3 million. The contract was to be paid as $10.7 million in 2018, $11.7 million in 2019, $13.1 million in 2020, $13.2 million in 2021, $13.2 million in 2022, and $13.4 million in 2023. If the appropriate interest rate is 8 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year. (Do not round intermediate calculations and enter...
Parramore Corp has $18 million of sales, $1 million of inventories, $3 million of receivables, and...
Parramore Corp has $18 million of sales, $1 million of inventories, $3 million of receivables, and $1 million of payables. Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 8% rate. Assume 365 days in year for your calculations. Do not round intermediate steps. A. What is Parramore's cash conversion cycle (CCC)? Do not round intermediate calculations. Round your answer to two decimal places. _______ DAYS B. If Parramore could...
Inventory Turnover and days’ sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are...
Inventory Turnover and days’ sales in inventory Kracker Corp., Foodstuff, Inc., and Winston Stores, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information: Kracker Corp. Foodstuff Inc. Winston Stores Cost of merchandise sold $32,850.0 $34,675.0 $35,040.0 Inventory, beginning of year 1,908.9 2,131.8 1,582.1 Inventory, end of year 1,871.1 2,048.2 1,489.9 a. & b. Determine...
The Paden Corporation has annual sales of $92 million. The average collection period is 54 days....
The Paden Corporation has annual sales of $92 million. The average collection period is 54 days. What is the average investment in accounts receivable as shown on the balance sheet? (Use 365 days per year. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)      Average accounts receivable $    Essence of Skunk Fragrances, Ltd., sells 7,300 units of its perfume collection each...
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 60 days, an average collection...
Cash Conversion Cycle Negus Enterprises has an inventory conversion period of 60 days, an average collection period of 48 days, and a payables deferral period of 27 days. Assume that cost of goods sold is 80% of sales. Assume a 365-day year. Do not round intermediate calculations. What is the length of the firm's cash conversion cycle? Round your answer to the nearest whole number. ___days If annual sales are $4,124,500 and all sales are on credit, what is the...
Leyton Lumber Company has sales of $12 million per year, all on credit terms calling for...
Leyton Lumber Company has sales of $12 million per year, all on credit terms calling for payment within 30 days, and its accounts receivable are $1.8 million. Assume 365 days in year for your calculations. What is Leyton's DSO? Round your answer to two decimal places. days What would DSO be if all customers paid on time? Round your answer to two decimal places. days How much capital would be released if Leyton could take actions that led to on-time...
The Morden Corporation has ending inventory of $483,167, and cost of goods sold for the year...
The Morden Corporation has ending inventory of $483,167, and cost of goods sold for the year just ended was $4,285,131. What is the inventory turnover? (Round the final answer to 2 decimal places.) Inventory turnover             times What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations. Round the final answer to 2 decimal places.) Days' sales in inventory              days How long on average did a unit of inventory sit on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • This module focuses on the basics of Physical Security, Social Engineering, Network Vulnerabilities and Threats, Authentication,...
    asked 20 minutes ago
  • 6. For the given polynomial, find all zeros of the polynomial algebraically. Factor the polynomial completely....
    asked 20 minutes ago
  • What words or images come to mind when you think of disability?
    asked 27 minutes ago
  • Ajax entered into a four-year finance lease that specifies eight equal minimum semi-annual lease payments. Each...
    asked 27 minutes ago
  • A spherical tank, 1.5 m in diameter, is maintained at a temperature of 120 ◦C and...
    asked 28 minutes ago
  • Consider the salt, lead(II) iodate, Pb(IO3)2. Write the equilibrium reaction (with states), and the equilibrium-constant expression...
    asked 31 minutes ago
  • A 1963 Lincoln Continental travels northward at a speed of 25 m/s. When it enters an...
    asked 35 minutes ago
  • Let Z[x] be the ring of polynomials with integer coefficients. Find U(Z[x]), the set of all...
    asked 42 minutes ago
  • Regarding geotextiles used in roadway separation: What is the required burst pressure of a geotextile supporting...
    asked 1 hour ago
  • [A] List all the structural features (chains, rings, functional groups, # of C's, rings, etc) the...
    asked 1 hour ago
  • . Let Y1, ..., Yn denote a random sample from the exponential density function given by...
    asked 1 hour ago
  • The Oregon Department of Transportation (ODOT) released a request for proposals to widening/expanding a certain segment...
    asked 1 hour ago