Question
In: Accounting
Selected financial data for Quick Sell, Inc., a retail store, appear as follows. Year 2 Year...
Selected financial data for Quick Sell, Inc., a retail store, appear as follows.
| Year 2 | Year 1 | ||||||
| Sales (all on account) | $ | 756,000 | $ | 606,000 | |||
| Cost of goods sold | 417,000 | 353,000 | |||||
| Average inventory during the year | 156,000 | 146,000 | |||||
| Average receivables during the year | 150,000 | 100,000 | |||||
a-1. Compute the gross profit percentage for both years. (Round your percentage answers to the nearest whole number. i.e. 0.1234 as 12%.)
a-2. Compute the inventory turnover for both years. (Round your answers to 1 decimal place.)
a-3. Compute the accounts receivable turnover for both years. (Round your answers to 1 decimal place.)
b. Which of the following show a positive or negative trend?
|
||||||||||||||||||||||||||||||||||||||||||||||||
Solutions
Expert Solution
Answer a-1.
Year 1:
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $606,000 - $353,000
Gross Profit = $253,000
Gross Profit Percentage = Gross Profit / Sales
Gross Profit Percentage = $253,000 / $606,000
Gross Profit Percentage = 42%
Year 2:
Gross Profit = Sales - Cost of Goods Sold
Gross Profit = $756,000 - $417,000
Gross Profit = $339,000
Gross Profit Percentage = Gross Profit / Sales
Gross Profit Percentage = $339,000 / $756,000
Gross Profit Percentage = 45%
Answer a-2.
Year 1:
Inventory Turnover = Cost of Goods Sold / Average
Inventory
Inventory Turnover = $353,000 / $146,000
Inventory Turnover = 2.4 times
Year 2:
Inventory Turnover = Cost of Goods Sold / Average
Inventory
Inventory Turnover = $417,000 / $156,000
Inventory Turnover = 2.7 times
Answer a-3.
Year 1:
Accounts Receivable Turnover = Sales / Average Receivables
Accounts Receivable Turnover = $606,000 / $100,000
Accounts Receivable Turnover = 6.1 times
Year 2:
Accounts Receivable Turnover = Sales / Average Receivables
Accounts Receivable Turnover = $756,000 / $150,000
Accounts Receivable Turnover = 5.0 times
Answer b.
Gross Profit Rate = Positive Trend
Inventory Turnover = Positive Trend
Accounts Receivable Turnover = Negative Trend
Growth in Net Sales = Positive Trend
ekkarill92 answered 1 year agoRelated Solutions
Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Ending...
Financial data for Bridger Inc. for last year are as
follows:
BRIDGER INC.
Balance Sheet
Ending
Balance
Beginning
Balance
Assets
Cash
$
156,000
$
151,000
Accounts receivable
420,000
280,000
Inventory
430,000
510,000
Plant and equipment, net
634,000
659,000
Investment in Brier Company
510,000
480,000
Land (undeveloped)
330,000
330,000
Total assets
$
2,480,000
$
2,410,000
Liabilities and Shareholders’
Equity
Accounts payable
$
240,000
$
280,000
Long-term debt
1,000,000
1,000,000
Shareholders’ equity
1,240,000
1,130,000
Total liabilities and shareholders’ equity...
Financial data for Bridger Inc. for last year are as follows: BRIDGER INC. Balance Sheet Ending...
Financial data for Bridger Inc.
for last year are as follows:
BRIDGER INC.
Balance Sheet
Ending
Balance
Beginning
Balance
Assets
Cash
$
164,000
$
159,000
Accounts
receivable
480,000
340,000
Inventory
490,000
540,000
Plant and equipment,
net
896,000
931,000
Investment in Brier
Company
590,000
560,000
Land
(undeveloped)
410,000
410,000
Total assets
$
3,030,000
$
2,940,000
Liabilities and Shareholders’
Equity
Accounts
payable
$
350,000
$
390,000
Long-term debt
1,200,000
1,200,000
Shareholders’
equity
1,480,000
1,350,000
Total liabilities
and shareholders’ equity...
Selected financial information gathered from the Matador Corporation follows: Year 3 Year 2 Year 1 Average...
Selected financial information gathered from the Matador
Corporation follows:
Year 3
Year 2
Year 1
Average assets
$1,007,000
$1,094,000
$1,184,000
Average equity
$215,000
$294,000
$364,000
Return on assets
5.9%
6.6%
7.2%
Quick ratio
0.3
0.5
0.6
Sales
$1,650,000
$1,452,000
$1,304,000
Cost of goods sold
$1,345,000
$1,176,000
$1,043,000
Using only the data presented, which of the following statements
is most correct?
A. Leverage has declined.
B. Return on equity has improved.
C. Gross profit margin has improved.
Johnson Beverage sell to Retail store customers - about 20 customers Last year Revenue was $12...
Johnson Beverage sell to Retail store customers -
about 20 customers
Last year Revenue was $12 million - Sell
Sport Drinks
(Exhibit 1 Customer Profitability)
Saver
Oscars
Downtown
Superstore
Odd Lots
Midwellon
Retail
Others
Total JBI
Net Revenue
$1,168,000
$1,192,000
$121,520
$454,500
$9,063,980
$12,000,000
Cost of Goods Sold
1,048,000
1,048,000
104,800
393,000
7,886,200
10,480,000
Gross Profit
120,000
144,000
16,720
61,500
1,177,780
1,520,000
Customer Service Costs
116,800
119,200
12,152
45,450
906,398
1,200,000
Customer Profit
3,200
24,800
4,568
16,050
271,382
320,000
Profit %...
Selected financial data for Surf City and Paradise Falls are as follows: ($ in millions) Surf...
Selected financial data for Surf City and Paradise Falls are as
follows:
($ in
millions)
Surf City
Paradise Falls
2018
2017
2018
2017
Total assets
$
16,133
$
14,922
$
33,296
$
34,121
Total
liabilities
9,720
8,195
13,938
14,188
Total stockholders’
equity
6,413
6,727
19,358
19,933
Sales revenue
$
6,503
$
14,616
Interest
expense
318
408
Tax expense
44
Net income
568
2,324
1-a. Calculate the debt to equity ratio for
Surf City and Paradise Falls for the most recent...
Selected financial data for Bahama Bay and Caribbean Key are as follows: ($ in millions) Bahama...
Selected financial data for Bahama Bay and Caribbean Key are as
follows:
($ in
millions)
Bahama Bay
Caribbean Key
2018
2017
2018
2017
Total assets
$
9,883
$
9,802
$
9,083
$
9,122
Total
liabilities
8,172
7,636
7,613
7,603
Total stockholders’
equity
1,711
2,166
1,470
1,519
Sales revenue
$
5,997
$
12,969
Interest
expense
237
181
Tax expense
85
359
Net income
347
380
Selected financial data for Bahama Bay and Caribbean Key are as
follows:
($ in
millions)
Bahama...
1. A retail store chain with 2 locations is worried that Store #2 is not being...
1. A retail store chain with 2 locations is worried that Store
#2 is not being patroned by enough male customers. They want to run
a hypothesis test that the percent of customers that are male is
the same at both locations. They have collected the following data.
Refer to Store #1 as Population 1 and Store #2 as Population 2, and
answer the following questions leading up to the hypothesis
test.
Store #1(population) 1 Customers surveyed = 400 ,Number...
Selected data pertaining to Lore Co. for the Year 4 calendar year is as follows: Net...
Selected data pertaining to Lore Co. for the Year 4 calendar
year is as follows: Net cash sales $ 3,000 Cost of goods sold
18,000 Inventory at beginning of year 6,000 Purchases 24,000
Accounts receivable at beginning of year 20,000 Accounts receivable
at end of year 22,000 What was Lore’s inventory turnover for Year
4?
Grand, Inc. is a retail clothing store that uses the "Retail" method to value inventory. The...
Grand, Inc. is a retail clothing store that uses the "Retail"
method to value inventory. The following information is presented
below regarding the current operations of the company:
Cost
Retail
Initial Inventory
27,000
45,000
Purchase
58,000
116,000
Sales
125,000
Determine the ending inventory valuation for the current period
using the "Retail Method":
1. Selected financial data of K Technologies, Inc., at December 31, Year 1, are shown below:...
1. Selected financial data of K Technologies, Inc., at December
31, Year 1, are shown below:
Cash......................................... $42,000 Accounts
payable ........$ 78,000 Accounts receivable..................
90,000 Notes payable.............. 21,000
Inventory................................... 39,000 Accrued
taxes.............. 10,800 Fixed
assets.............................. 120,000 Capital
stock............... 120,000 Accumulated depreciation........
25,800 Retained earnings....... 35,400 The following additional
information is available for the year ended December 31, Year 1:
Sales
...................................................................$450,000
Depreciation...... $15,000 Cost of goods sold (excluding
depreciation) ........ 312,000 Net income ........ 12,000
Purchases............................................................
210,000 For Year...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Suppose a company is looking to hedge a risk in the derivatives market. What, fundamentally, is...
- Training and Development assignment. Describe the usage of Computer Based Training (CBT) in McDonald's Company training...
- PUT IN JAVA PROGRAMMING LANGUAGE The Rectangle class: Design a class named Rectangle to represent a...
- Journal article summary on inter-group conflict Peer Reviewed Journal article from past 3 years. Please include...
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
ADVERTISEMENT