What is the inventory turnover ratio for ABC Corp. if cost of goods sold equals $5,000, current ratio equals 3, quick ratio equals 1.5, and the firm has $1,800 in current assets? A. 2.78 times B. 4.17 times C. 5.56 times D. 8.33 times

What is the inventory turnover ratio for ABC Corp. if cost of goods sold equals $5,000, current ratio equals 3, quick ratio equals 1.5, and the firm has $1,800 in current assets? A. 2.78 times B. 4.17 times C. 5.56 times D. 8.33 times

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 15BEA: Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000....

See similar textbooks

Related questions

Q: Beach Wear has current liabilities of $350,000, a quick ratio of 1.65, an inventory turnover of 3.2,…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Calculate the value of cost of goods sold for Thompson company given the following information:…

A: Quick Ratio = Liquid Assets / Current Liabilities Current Ratio = Current Assets/ Current…

Q: A company's sales equal $60,000 and cost of goods sold equals $20,000. Its beginning inventory was…

A: The inventory turnover ratio is calculated using the cost of goods sold and the average inventory.…

Q: The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid…

A: Current Liabilities: These are liabilities that are due in less than a year and are expected to pay…

Q: JP Vineyards has sales of $891,000, a gross profit margin of 0.322, and inventory of $179,000. What…

A: Here, to solve this question we have to find the cost of goods sold, and then the cost of goods sold…

Q: Elephant, Inc.'s cost of goods sold for the year is $ 2 comma 400 comma 000$2,400,000, and the…

A: The correct answer is Option (B).

Q: Walker Corp. has current liabilities of $440,000, a quick ratio of .81, inventory turnover of 5.7,…

A: Quick ratio = Quick assets / Current liabilities Quick assets = Current assets - Inventory - Prepaid…

Q: Ivanhoe Corp. has a gross profit margin of 35.00 percent, sales of $33,000,000, and inventory of…

A: A ratio that provides information regarding the number of times a company sold or replaced its…

Q: 15. Mitra Company has a quick ratio value of 1.5. It has total current assets of $100,000 and total…

A: Quick Ratio = 1.5 Current Assets = $100,000 Current Liabilities = $25,000 Sales = $200,000

Q: Scott Walker Company reported the following data for the past year: $460,000 $230,000 $100,000…

A: Cost of goods Sold refers to total cost incurred for producing goods right from acquisition of…

Q: A company had an average inventory last year of $180,000 and its inventory turnover was 5. If sales…

A: Inventory Turnover Ratio: Inventory turnover refers to the pace at which inventory stock is sold,…

Q: (a) The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A company has an average inventory on hand of P100,000 and the days in inventory are 73 days. What…

A: Days in inventory=Average inventoryCost of goods sold×365 days

Q: Soaring Eagles Corp. has total current assets of $11,320,000, current liabilities of $5,204,000 and…

A: Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Q: Dungy Training Company has a current ratio of 0.70 to 1, based on current assets of $3.43 million…

A: Current Ratio is the ratio of current assets and current liabilities of the firm. It measures…

Q: Highly Suspect Corp. has current liabilities of $417,000, a quick ratio of 1.10, inventory turnover…

A: Here, Current Liabilities is $417,000 Quick Ratio is 1.10 Inventory Turnover Ratio is 3.60 Current…

Q: Fulmer company has an inventory turnover ratio of 6. Their Annual CoGS are $750,000. If I were to…

A: Given the following information: Inventory turnover ratio: 6 Cost of goods sold: $750,000

Q: What is the company’s inventory turnover ratio

A: The method by which it is ascertained whether there exists an optimal level of inventory in the…

Q: Answer each of the questions in the following unrelated situations. The current ratio of a company…

A: As per authoring guidelines the first question is answered. Please repost the question specifying…

Q: The revenue for a firm is $2,500,000. Its cost of revenue is $850,000, and its average inventory for…

A: 1. Inventory turnover ratio= =Cost of goods sold/Average inventory = $850,000/$62,000 =13.71 times

Q: Selected XYZ financials (in dollars) Gross income 25,240,000 24,324,000 18,785,000 2,975,000…

A: Inventory turnover ratio = Cost of goods sold/Average inventory Cost of goods sold = 12,600,000…

Q: If a firm's inventories on hand are $200,000, its cost of goods sold is $600,000, and its sales are…

A: Given data: Cost of goods sold = $600,000 Inventory = $200,000

Q: Answer each of the questions in the following unrelated situations. (a) The current ratio of a…

A: As posted multiple independent questions we are answering only first answer kindly repost the…

Q: What is the current ratio? Use the information below. Current Assets: $450,000 Costs of Goods Sold:…

A: Lets understand the basics. Current ratio shows that how much current asset is there in compare to…

Q: Highly Suspect Corp. has current liabilities of $409,000, a quick ratio of 1.40, inventory turnover…

A: Current Ratio = 3.50 Quck Ratio = 1.40 Current Liabilities = $409,000 Inventory turnover = 4.00

Q: (b) A company had an average inventory last year of $209,000 and its inventory turnover was 6. If…

A: The current ratio, commonly referred to as the working capital ratio, assesses a company's capacity…

Q: National Co. has P5 million in inventory and P2 million in accounts receivable. Its average daily…

A: Inventory conversion period = Inventory/Average daily cost of goods sold Note :- In case cost of…

Q: Your company sells $469,300 of goods during the year that have a cost of $398.600. Inventory was…

A: Inventory turnover ratio is a form of efficiency ratio, which shows how many times inventory is…

Q: h Wear has current liabilities of RM350,000, a quick ratio of 1.65, inventory turnover of 4.7, and a…

A: We need to compute the cost of goods sold. Current ratio = Current assets / Current liabilities…

Q: Nizwa Company had the cost of goods sold of $ 160,000 and inventory balance was $23,000. What is the…

A: Inventory turnover ratio = cost of goods sold / average inventory

Q: turnover

A: Formula to calculate the inventory turnover ratio is: Inventory turnover ratio = Cost of goods sold…

Q: Cullumber Corp. has a gross profit margin of 40.00 percent, sales of $39,000,000, and inventory of…

A: Inventory turnover is a ratio showing how many times a company has sold and replaced inventory…

Q: 1. ABC Had sales of P12,000,000 of which all were on credit. Its operations resulted to a gross…

A: Gross profit = Credit Sales × Gross profit ratio=P 12,000,000 × 60%=P 7,200,000 Cost of goods sold…

Q: Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has…

A: Turnover: Turnover is a ratio used to measure the efficiency of a company's ability to use its…

Q: Giorgio had cost of goods sold of $9,101 million, ending inventory of $2,089 million, and average…

A: Inventory turnover = Cost of goods sold / Average inventory

Q: Vertical Analysis of Income Statement Revenue and expense data for Rogan Technologies Co. are as…

A: The income statement shows the net profits of the business earned during the given period.

Q: iorgio had cost of goods sold of $9,637 million, ending inventory of $2,305 million, and average…

A: The following calculations are done for Giorgio.

Q: A firm with sales of $500,000 has average inventory of $200,000. T he industry average for inventory…

A: Computation of inventory turnover:

Q: Corrigan Corporation had beginning inventory of $20,000 and ending inventory of $24,000. Itsnet…

A: Inventory Turnover is calculated to measure the level of inventory hold by the firm compared to…

Q: Complete the balance sheet and sales information in the table that follows for Isberg Industries…

A: Total asset turnover is the ratio between sales and total assets. Total Assets = $300,000 Total…

Q: Current assets: P465,000 Cost of Goods Sold: P1,230,000 Inventories: P270,000 Average Inventory…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: [EXCEL] Efficiency ratio: Bummel and Strand Corp. has a gross profit margin of 33.7 percent, sales…

A: The below expression can be used to calculate inventory turnover ratio:

Q: Cage Corporation has current liabilities of $510,000, a quick ratio of .93, inventory turnover of…

A: Given that Current ratio = 1.5 = Current Assets(CA)/Current Liabilities(CL) Current Assets = 1.5 *…

Question

100%

What is the inventory turnover ratio for ABC Corp. if cost of goods sold equals $5,000, current ratio equals 3, quick ratio equals 1.5, and the firm has $1,800 in current assets?

A. 2.78 times

B. 4.17 times

C. 5.56 times

D. 8.33 times

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
ACTIVITY 1. MULTIPLE CHOICE wblupi moit boog aamoz a adT Directions: Encircle the letter of the correct answer. 1. MCL Company has a total quick asset of P100,000.00 and quick ratio of 10. How much is the current liabilities of the entity? a. P1,000,000.00 b. P1,100,000.00 c. P900,000.00 d. P10,000.00 2. If the company's net sales is P250,000.00 and the average accounts receivable is P50,000.00, what is the A/R turnover ratio? c. P200,000.00 m d. P300,000.00 a. 5 To Coubrc bns 00.000,000 3. From a current ratio of 4 in 2018, the current ratio of the company is 5 in 2019. b. 1/5 a. This is something good from a liquidity standpoint. b. This is something bad from a liquidity standpoint c. This data has no implication on the liquidity status of the company. d. All of the above.
Guthrie plc has current liabilities of £340,000, a quick ratio of 1.8, inventory turnover of 4.2 and a current ratio of 3.3. Required: What is the cost of goods sold for the company? (Do not include the pound sign (£).) Cost of goods sold
W&B Corp. has current liabilities of $440,000, a quick ratio of 1.8, inventory turnover of 4.5, and a current ratio of 4.1. What is the cost of goods sold for the company? Cost of goods sold $
Efficiency ratio: Bummel and Strand Corp. has a gross profit margin of 33.7 percent, Sales of $47,112,365, and inventories of $14,595,435. What is its inventory turnover ratio?
Beach Wear has current liabilities of RM350,000, a quick ratio of 1.65, inventory turnover of 4.7, and a current ratio of 2.9. What is the cost of goods sold? Select one: a. RM2,056,250 b. RM1,760,750 c. RM1,950,000 d. RM1,980,500
Oriole corporation has current liabilities of $432,000, a quick ratio of 1.6, inventory turnover of 4.7, and a current ratio of 3.4. What is the cost of goods sold for Oriole Corporations? Cost of Goods sold ?
Question 1 ABC Corporation has a debt/equity ratio of 0.4, total debt of $400,000, sales of $50,000, cost of goods sold of $30,000, inventory of $10,000, and account receivable of $20,000. It is known that all sales are credit sales. a) What is the value of the total assets in ABC Corporation? b) Calculate the inventory turnover and thus the days' sales in inventory.
Highly Suspect Corp. has current liabilities of $417,000, a quick ratio of 1.10, inventory turnover of 3.60, and a current ratio of 3.30. What is the cost of goods sold for the company? Multiple Choice $3,302,640 $1,009,140 $1,146,750 $458,700 $4,953,960
If a company has sales of $1,300,000 and inventory of $245,000 and net income of $85,000, what is their inventory turnover?
Ivanhoe Corp. has a gross profit margin of 35.00 percent, sales of $33,000,000, and inventory of $14,300,000. What is its inventory turnover ratio? (Round answer to 2 decimal places, e.g. 15.25.)
Walker Corp, has current liabilities of $440,000, a quick ratio of .81, Inventory turnover of 5.7. and a current ratio of 1.8. What is the cost of goods sold for the company? (Do not round Intermedlate calculations.) Cost of goods sold 益券