Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. calculating the average inventory, the inventory t

Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days Last...

70.2K

Verified Solution

Question

Accounting

Calculating the Average Inventory, the Inventory Turnover Ratio, and the Inventory Turnover in Days

Last year, Dogwood Company had net sales of $9,375,000 and cost of goods sold of $4,612,000. Dogwood had the following balances:

January 1 December 31
Accounts receivable $725,000 $775,000
Inventory 450,000 425,000

Required:

Note: Round answers to one decimal place. Assume 365 days per year.

1. Calculate the average inventory. $fill in the blank 1

2. Calculate the inventory turnover ratio. fill in the blank 2 times

3. Calculate the inventory turnover in days. fill in the blank 3 days

4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?

  1. Based on the ratios Nikkola is performing very well.
  2. Based on the ratios Nikkola is not performing as expected.
  3. Without more detailed information on Nikkola's and its industry, it is difficult to classify these results as outstanding, poor, or somewhere in between

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

McKenna is registering for history class The morning classes are 1st 2nd and 3rd periods...

Basic Math
Q

Hyperion? Inc., currently sells its latest? high-speed color? printer, the Hyper? 500, for $ 343. It...

Finance
Q

How can a spetrophemeter be used to determine the concentration of unknown red food coloring solution?

Chemistry
Q

1. Explain three reasons why a mutation in a single allele might be difficult to detect...

Biology
Q

How wind force affect projectile velocity? what is the equation of projectile motion velocity x &...

Physics
Q

Change 514 to base eight eight

Basic Math
Q

Henry made a shirt using 1/3 yards of red fabric and 3/4 yards of blue...

Basic Math
Q

Nash Company reported 2025 net income of $159,800. During 2025 , accounts receivable increased by...

Accounting
Q

Required information Skip to question [The following information applies to the questions displayed below.]...

Accounting
Q

Rodger's Cabinet Manufacturers produces one product in a single manufacturing department. It uses flexible budgets...

Accounting
Q

Comprehensively explain, using numerical examples, why companies create value by investing capital, from investors, to...

Accounting
Q

CCR stock is currently trading for $72.42 per share. The firm is expected to pay...

Finance