Calculate the companys inventory turnover

Assignment Help Financial Management
Reference no: EM131936482

Inventory Turnover and Days' Sales in Inventory The Eastern Corporation installed a new inventory management system at the beginning of 2015. Eastern reported an inventory turnover of 2.80 in 2015. Shown below are data from the company's accounting records as reported by the new system:


20152016
Sales Revenue $19,000,000 $20,000,000
Cost of goods sold 8,500,000 8,900,000
Beginning inventory 2,500,000 2,530,000
Ending inventory 2,530,000 2,600,000


Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2015 and 2016.

Round your answers to two decimal points. HINT: Use your rounded answers for inventory turnover to calculate days' sales in inventory.


20152016
Inventory turnover Answer Answer



Days' sales in inventory Answer Answer

Reference no: EM131936482

Questions Cloud

What is the option time premium : Assume that a certain stock's current price in the open market stands at $32.25 per share. The premium on the call option for this stock is currently $5.21.
Compute operating income at some given units : International Data Systems' information on revenue and costs is relevant only up to a sales volume of 125,000 units.
Stock on the ex-dividend date if the dividend is declared : What will be the price of the stock on the ex-dividend date if the dividend is declared?
Calculate the implied default probabilities : BUEM076S7 - Financial Markets - Calculate the 6 monthly discount factors D(t) and the semi-annual zero coupon rates - calculate the prices
Calculate the companys inventory turnover : Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2015 and 2016.
What would be final estimate for the firm cost of equity : Assume that Dominion Healthcare facility is a large group practice. Its dividends are expected to grow at a constant rate of 7 percent per year.
Learning and Development Plan : The purpose of an L&D Plan is to enable the student/manager to progress through a training program in a proper and organised manner
Write a report providing the cfo with your recommendation : Write a report providing the CFO with your recommendation whether Zeta should set up the plant to produce the Spenza's.
What is the duration of each bond : Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities: What is the duration of each bond?

Reviews

Write a Review

Financial Management Questions & Answers

  The flotation cost adjusted initial outlay

how much stock would they have to sell if flotation costs are expected to be 15%? The flotation cost adjusted initial outlay.

  What was the average real return on crash-n-burns stock

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 3 percent, -11 percent, 27 percent, 21 percent, and 14 percent. The average inflation rate over this period was 3.9 percent and the average T-bill rate w..

  What is the expected value of this stock ten years

SRS, Inc. just paid an annual dividend of $1.78 last month. The required return is 12 percent and the dividend growth rate is expected to be constant at 2.3 percent. What is the expected value of this stock ten years from now?

  Company capital structure weights on market value basis

Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $87, and the book value per share is $6. The company also has two bond issues outstanding. What are the company's capital structure weights on a book value ba..

  Firm current assets are financed with long-term liabilities

When a portion of the firm’s current assets are financed with long-term liabilities, the firm

  Tax exempt not-for-profit

Mercy Me’s hospital (a tax exempt not-for-profit) has a target capital structure of 40% debt and 60% equity. At this capital structure, its cost of equity is 5% and its cost of Debt is 9%. What is its overall cost of capital?

  Risk is greater than risk of the firm average project

A firm is considering a new project whose risk is greater than the risk of the firm’s average project, based on all methods for assessing risk. In evaluating this project, it would be reasonable for management to do which of the following? Which of t..

  Litigation risk or losing a major customer

You were recently hired by Nast Media Inc. to estimate its cost of capital. You were provided with the following data: D1 = $2.00; P0 = $55.00; g = 8.00% (constant); and F = 5.00%. What is the cost of equity raised by selling new common stock? Which ..

  Examine how company in industry does their accounting

The accounting systems paper can take one of two approaches. For whichever industry you chose either find a software accounting system or examine how a company in the industry does their accounting. Generally it is easier to find a software for the i..

  Discuss the ethical dilemma larry faces

Larry has been the chief financial officer (CFO) of Maxima Auto Service for the past 10 years. The company has reported profits each year it's been in business. However, this year has been a tough one. Increased competition and the rising costs of la..

  Calculate current share price

If the expected return on ABC's common shares is 18.5 percent, calculate the current share price.

  Two different bonds currently outstanding

Jallouk Corporation has two different bonds currently outstanding. Bond M has a face value of $20,000 and matures in 20 years. The bond makes no payments for the first 6 years, then pays $1,100 every six months over the subsequent eight years, and fi..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd