Charlie’s Cycles Inc. has $110 million in sales. The companyexpects that its sales will increase 5% this year. Charlie’s CFO uses a simple linearregression to forecast the company’s inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (inmillions of dollars) is as follows:Inventories = $9 + 0.0875(Sales)Given the estimated sales forecast and the estimated relationship between inventories andsales, what are your forecasts of the company’s year-end inventory level and its inventoryturnover ratio?

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

A: Inventory turnover measures how many times, on average company sells its entire inventory during the…

Q: Sammy Corporation reported net sales of P300,000, P330,000, and P360,000 in the years, 2010, 2011,…

A: Horizontal analysis: Horizontal analysis can be defined as the analysis used to identify the change…

Q: Net sales are $80,000, cost of goods sold is $30,000, net income is $35,000, inventory is $15,000 at…

A: Inventory turnover ratio computes the number of days the company will take to sell the inventory in…

Q: The Tamaraw Corporation is trying to determine the effect of its inventory turnover ratio and DSO on…

A: Answer -  Part 1 - Computation of Tamaraw’s cash conversion cycle -    Cash Conversion Cycle = Days…

Q: Ash Company reported sales of $440,000 for Year 1, $490,000 for Year 2, and $540,000 for Year 3.…

A: Trend percent = Current Years Sales/Previous Year Sales x 100

Q: An annual revenue of $89 billion, inventory of $5.8 billion and annual cost of products produced of…

A: Inventory Turns refers to frequency by which inventory is converted into finished goods in given…

Q: Lemon Auto Wholesalers had sales of $1,400,000 last year, and the cost of goods sold represented 77…

A: Answer: Calculation of the earning after tax: Earning after tax is the net income a company earns…

Q: Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: Cash Conversion Cycle = Days Inventory Outstanding + Days Sales Outstanding - Days Payable…

Q: From last year to this year, Berry Barn reported that itsNet Sales increased from $300,000 to…

A: Gross profit rate = ( Gross profit  / sales ) x 100

Q: What is the inventory period for a firm with an annual cost of goods sold of P5 million, P1.2…

A: The inventory turnover ratio is a financial ratio that defines the number of times within which…

Q: Zarruk Construction's DSO is 50 days (on a 365-day basis), accounts receivable are $100 million, and…

A: Given information: Company’s DSO is 50 days, Number of days in a year is 365 days, Accounts…

Q: 15. Charlie's Cycles Inc. has $110 million in sales. The company expects that its sales will…

A: Inventory turnover ratio is ratio of sales to inventory. Forecasted sales = Sales*(1+increment%)…

Q: You are trying to prepare financial statements for Bartlett Pickle Company, but seem to be missing…

A: Collection Period :— It is the average number of period to collect the receivables from customer.…

Q: Wayne's Wells has sales for the year of P48,900 and an average inventory 21 of P8,800. The cost of…

A: Days Sales Inventory = 365* Average Inventory/ Cost of goods sold

Q: Determine the Inventory Turnover Ratio (ITR) and Days Sales Outstanding (DSO

A: The Inventory Turnover Ratio is the cycle of sale and purchase of goods by a company over a…

Q: a. EFG reports annual sales of $ 30 million. Annual costs of goods sold is $ 15 million. Inventory…

A: Inventory refers to the goods or items which are stored by the business either for selling or for…

Q: Zane Corporation has an inventory conversion period of 64 days,an average collection period of 28…

A:

Q: Jasper Jewelry has $150 million in sales. The company expects that its sales will increase 5% this…

A: Sales =$150 Million Sale increase percentage =5% Inventories = $11 + 0.07(Sales)

Q: During the current period, Gleason Technology records total sales of $850,000, with a cost of…

A: Calculate  net sales for the Gleason Technology during the current period:

Q: What will be the net change in the cash conversion cycle, assuming a 365-day year?

A: Cash conversion cycle (CCC) refers to the time period (in days) taken by a company to convert its…

Q: Crockett Electronics has a quick ratio of 2.00x, $26,775 in cash, $14,875 in accounts receivable,…

A: Quick ratio of the firm is 2.00x , current assets is $59,500 and current liabilities is $20825.…

Q: Elephant, Inc.'s cost of goods sold for the year is $1,900,000, and the average merchandise…

A: The question is related to Ratio Analysis. The details are  Average Inventory = $ 132000 Cost of…

Q: Based on the following information, how many days of supply of inventory is the firm holding (assume…

A: Inventory turnover = Cost of goods sold / Average Inventory  = $6,050,000 / 2,900,000 = 2.09 times

Q: Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were…

A: According to the percentage of sales method, the accounts in the balance sheet possess a percentage…

Q: The Tamaraw Corporation is trying to determine the effect of its inventory turnover ratio and DSO on…

A: Answer -  Part 1 - Cash Conversion Cycle - Inventory conversion period + average collection period…

Q: If a company had sales of $2,587,643 in 2008 and sales of $3,213,456 in2013, by what percentage did…

A:

Q: Jace Furnishings has $325 million in sales. The company expects that its sales will increase 8% this…

A: Current sale =$325 Million Growth rate =8% Expected Sale = Sale *(1+growth rate) = 325*(1+0.08)…

Q: The Lux Co. has an inventory conversion period of 60 days, a receivable conversion period of 35…

A: The answer is stated below:

Q: A firm has annual sales of $100 million, $20 million of inventory, and $30 millionof accounts…

A: Inventory Turnover Ratio (ITR) shows the number of times a company has used the inventory in the…

Q: Libscomb Technologies' annual sales are $6,750,624 and all sales are made on credit, it purchases…

A: Receivables Period = 365 / Receivables turnover

Q: Jude Corp. has annual sales of P50,735,000, an average inventory level of P15,012,000, and average…

A: Cash conversion cycle (CCC) It is the number of days required to convert cash (invested in operation…

Q: Last year, Quayle Energy had sales of $200 million and its inventory turnover ratio was 5.0. The…

A: Formula, Quick Ratio = [ (Current assets - Inventory )/ current liabilities ]

Q: Chastain Corporation is trying to determine the effect of its inventory turnover ratio and days…

A: Step 1: Compute the CCC (cash conversion cycle) as follows:

Q: hat were JT's annual sales and DSO?

A: Information Provided: Quick ratio = 1.0 Current Ratio = 1.8 Inventory Turnover = 3.5 Total current…

Q: Kareem & Sons last year reported sales of 12 million and an inventory turnover ratio of 4. The…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Beckenworth had cost of goods sold of $9,921 million, ending inventory of $2,589 million, and…

A: Entities use the days sales in inventory (DSI) ratio to assess the average amount of time for the…

Q: This year, ABC expects sales of $137,328,000 and a gross profit margin of 16 percent this year,…

A: given, sales = $137,328,000 gross profit margin = 16% COGS = SALES x (1- GROSS PROFIT MARGIN) COGS =…

Q: Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices,…

A: LIFO Method is an inventory valuation method where inventory purchased last sold first. Whereas as…

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: Williams & Sons last year reported sales of $127 million, cost of goods sold (COGS) of $105 and an…

A: Given information: Sales reported of $127 million, COGS is $105 million, Inventory turnover ratio is…

Q: Libscomb Technologies' annual sales are $6,997,444 and all sales are made on credit, it purchases…

A: Receivables turnover = Net credit sales / Average Receivables

Q: Libscomb Technologies' annual sales are $5,790,872 and all sales are made on credit, it purchases…

A: Given that, annual sales =  $5,790,872 purchases(cost of goods sold) = $3,221,342   inventory =…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.