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What is the average days in inventory for the year

What is the average days in inventory for the year?

a. 126.7 days.

b. 101.4 days.

c. 152.0 days.

d. 111.7 days.

 

 

113. The following balances come from the financial statements of Way Industries:

Sales revenue

$850,000

Accounts receivable

$280,000

Beginning inventory

$50,000

Ending inventory

$30,000

Net purchases

$460,000

Sales returns

$50,000

Sales discount

$20,000

Given this information, what is the company’s inventory turnover ratio?

a.

21.25.

b.

28.33.

c.

16.0.

d.

9.6.

e.

12.0.

 

 

114. Company A is identical to Company B in every regard except that Company A uses FIFO and Company B uses LIFO. In an extended period of rising inventory costs, Company A's gross profit and inventory turnover, compared to Company B's, would be:

 

Gross profit

Inventory turnover

a.

Lower

Lower

b.

Higher

Higher

c.

Higher

Lower

d.

Lower

Higher

 

 

115. Nu Company reported the following data for its first year of operations:

Net sales

$2,800

Cost of goods sold

1,680

Operating expenses

880

Ending inventories

820

What is Nu's gross profit ratio?

a. 80%.

b. 49%.

c. 40%.

d. 5%.

 

 

116. Anthony Corporation reported the following amounts for the year:

Net sales$296,000

Cost of goods sold  138,000

Average inventory    50,000

Anthony’s inventory turnover ratio is:

a. 2.42.

b. 2.76.

c. 3.21.

d. 2.14.

 

 

117. Anthony Corporation reported the following amounts for the year:

Net sales$296,000

Cost of goods sold  138,000

Average inventory    50,000

Anthony’s average days in inventory is:

a. 170 days.

b. 114 days.

c. 132 days.

d. 151 days.

 

 

118. Anthony Corporation reported the following amounts for the year:

Net sales$296,000

Cost of goods sold  138,000

Average inventory    50,000

Anthony’s gross profit ratio is:

a. 53.4%.

b. 51.9%.

c. 50.3%.

d. 46.6%.

 

 

119. In a periodic inventory system, the purchase of inventory is debited to:

a. Purchases.

b. Cost of goods sold.

c. Inventory.

d. Accounts payable.

 

 

120. Northwest Fur Co. started the year with $94,000 of merchandise inventory on hand. During the year, $400,000 in merchandise was purchased on account with credit terms of 1/15, n/45. All discounts were taken. Northwest paid freight-in charges of $7,500. Merchandise with an invoice amount of $5,000 was returned for credit. Cost of goods sold for the year was $380,000. What is ending inventory?

a. $112,490.

b. $112,550.

c. $116,500.

d. $120,300.

 

 

121. The inventory method that will always produce the same amount for cost of goods sold in a periodic inventory system as in a perpetual inventory system would be:

a. FIFO.

b. LIFO.

c. Weighted average.

d. Each method always produces a different amount.

Feb 01 2020 View more View Less

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