112. Consider the following inventory data:
Beginning inventory$150,000
Ending inventory 100,000
Purchases 310,000
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.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more