Calculate the companys inventory turnover

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Q1. What is the acid-test ratio? How does it measure a company's liquidity? Explain with Example.

Q2. The following information is available for the McCartney Corporation:

Sales

$750,000

Cost of goods sold

450,000

Gross profit

300,000

Operating income

85,000

Net income

42,000

Inventory, beginning-year

71,200

Inventory, end-of-year

48,800

Calculate the company's inventory turnover and its days' sales in inventory.

Q3. A company made the following merchandise purchases and sales during the month of July:

July 1 purchased

380

units at

$15 each

July 5 purchased

270

units at

$20 each

July 9 sold

500

units at

$55 each

July 14 purchased

300

units at

$24 each

July 20 sold

250

units at

$55 each

July 30 purchased

250

units at

$30 each

There was no beginning inventory. If the company uses the first-in, first-out perpetual inventory method what would be the cost of the ending inventory?

Reference no: EM131784945

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