Reference no: EM13953300
Inventory Turnover
Garden Fresh Inc. is a wholesaler of fresh fruits and vegetables. Each year, it submits a set of financial ratios to a trade association. Even though the association doesn't publish the individual ratios for each company, the president of Garden Fresh thinks it is important for public relations that his company look as good as possible. Due to the nature of the fresh fruits and vegetables business, one of the major ratios tracked by the association is inventory turnover. Garden Fresh's inventory stated at FIFO cost was as follows:
Year Ending December 31
|
|
2014
|
2013
|
|
Fruits
|
$10,000
|
$9,000
|
|
Vegetables
|
30,000
|
33,000
|
|
Totals
|
$40,000
|
$42,000
|
Sales revenue for the year ending December 31, 2014, is $3,690,000. The company's gross profit ratio is normally 40%.
Based on these data, the president thinks the company should report an inventory turnover ratio of 90 times per year.
Required
1. Using the necessary calculations, explain how the president came up with an inventory turn- over ratio of 90 times.
2. Do you think the company should report a turnover ratio of 90 times? If not, explain why you disagree and explain, with calculations, what you think the ratio should be.
3. Assume that you are the controller for Garden Fresh. What will you tell the president?
|
How many such pairs of letters are there in word corporate
: How many such pairs of letters are there in the word 'CORPORATE', which have as many letters between them in the word as there are, in the English alphabet between the same letter sequence?
|
|
Discuss the legal arguments raised by parties in given case
: Discuss the legal arguments raised by the parties in case. All the legal arguments are clearly and accurately detailed, and there is a synthesis with the relevant law.
|
|
Starbucks coffee and levi strauss jeans
: 1. Compose value proposition statements for, Starbucks Coffee and Levi Strauss Jeans. Each value proposition should crystallize what each brand offers to consumers and serve as a clear mission statement for all subsequent STP marketing efforts.
|
|
Prepare any necessary adjusting or correcting entries
: Prepare any necessary adjusting or correcting entries Assume that no entries have been made regarding the situation other than those specifically described
|
|
Problem regarding the inventory turnover
: Garden Fresh Inc. is a wholesaler of fresh fruits and vegetables. Each year, it submits a set of financial ratios to a trade association. Even though the association doesn't publish the individual ratios for each company, the president of Garden F..
|
|
Discusses the environmental forces
: Question 1: Chapter 3 discusses the environmental forces that affect the success of a product. Select a product. Tell me the name of the product - be specific by using a brand name and specific attributes of product. See example below.
|
|
Which faculty would you expect to support the union
: Assume that a union has organized the faculty at the university or the college where you are a student. What impact would you expect the union to have on the faculty? Which faculty would you expect to support the union
|
|
Provisions in a loan agreement
: As assistant controller of Midwest Construction Company, you are reviewing with your boss, the controller, Dave Jackson, the financial statements for the year just ended. During the review, Jackson reminds you of an existing loan agreement with So..
|
|
Explain how you would conduct the survey
: What are the ethical implications if the manufacturer of Brand A toothpaste asked you to survey only its employees?
|