Compute the monthly inventory turnover ratio

Assignment Help Financial Accounting

Reference no: EM13788162

A retailer in Las Vegas has an ending inventory of $250,000 as of December 31, 2012 and the following accounting information.

Month ending inventory cost of goods sold

January 225000 1200000

February 325000 1250000

March 240000 1350000

April 325000 1500000

May 460000 950000

June 220000 850000

July 85000 1650000

August 156000 1325000

September 220000 1750000

October 265000 850000

November 100000 2200000

December 350000 3500000

a) Compute the monthly inventory turnover ratio for each of the twelve months.

b) What are the annual costs of goods sold an average inventory for the year?

c) Compute the annual inventory turnover ratio. How is the retailers performance compared to the industry standards, assuming it’s business is similar to Wal-mart’s?

Reference no: EM13788162

Questions Cloud

Shorts notes on consequences and actions : Consequences and Actions

Which it will be indifferent between purchasing-making part : Ellie Industries currently manufactures 30,000 units of part MR24 a month for use in production . The facilities now being used to produce part MR 24 have a fixed monthly cost of of $150,000 and a capacity to produce 35,000 units per month.

Journal articles that correspond with topic of negotiable : Conduct an Internet search to locate newspaper or journal articles that correspond with the topic of negotiable instruments. Look for topics that involve businesses that may have been involved in a court case connected with a negotiable instrument..

Identifying three major cognitive theorists and theories : Complete the following table by identifying three major cognitive theorists and theories. Name each theorist and the theorist's associated theory

Compute the monthly inventory turnover ratio : Compute the monthly inventory turnover ratio for each of the twelve months. What are the annual costs of goods sold an average inventory for the year? Compute the annual inventory turnover ratio. How is the retailers performance compared to the indus..

Direct costing and in favour of full costing : Which of the following is an argument against the sued of direct (variable) costing and in favour of full (absorption) costing? The manager of a profit center should not be responsible for which of the following types of decision? Residual income is ..

Does anyone know forming an inovative business? : Analyze different innovative business models to determine the best model for a specific venture.

Describe how well you think starbucks is defending itself : Describe how well you think Starbucks is defending itself against the claims of the IWW. What other responses should the company consider using?

Explain the four parts of the sara : Explain the four parts of the S.A.R.A. problem-solving process for police. Explain what the acronym SARA stands for and identify each of the four parts

User Account

All Pages