Compute turnover and days sales inventory for raw materials

Assignment Help Accounting Basics
Reference no: EM131536207

Question: The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company.

2305_Direct.png

Required: 1. Prepare the company's 2011 manufacturing statement.

2. Prepare the company's 2011 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.
Analysis Component

3. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days' sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days' sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the two types of inventories. Round answers to one decimal place.

Reference no: EM131536207

Questions Cloud

What are the four noble truths in buddhism : What are the four paths to enlightenment and/or union to God in Hinduism? What are the four noble truths in Buddhism
Recommend the facility to build based on the npv : Recommend the facility to build based on the NPV. Use current exchange rates to convert the NPV's to the Brazil real.
Market data on us treasury instruments : Given the following market data on U.S. Treasury instruments:
Calculate the marginal revenue of the second : Construct a demand schedule (table), and calculate the marginal revenue of the second unit sold.
Compute turnover and days sales inventory for raw materials : The following calendar year-end information is taken from the December 31, 2011, adjusted trial balance and other records of Plaza Company.
Explain the purpose of business law : Explain the purpose of business law and how the judicial system fits into society -- including business
Explain why you have chosen the given companies : Explain why you have chosen these companies, and do not choose companies that your classmates have already addressed in a post.
What is the role of public policy analysts : What is the role of public policy analysts in a politically divisive environment-that is, what they do in this role and what do you think they bring
Compute the company manufacturing cycle efficiency : White Maple Company produces maple bookcases to customer order. It received an order from a customer to produce 15,000 bookcases.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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