Inventory turnover is one of the financial to evaluate the business performance. This ratio would show how many times the business replaces and sells the inventory to generate money during the year.Answer and Explanation: InventoryTurnover=SalesAverageInventory It is possible for the inventor...
Inventory turnover is a ratio which measure the time in which a company can convert its inventory into cash.The inventory turnover ratio will be derived when we divide Cost of goods sold from average inventory of a company.Answer and Explanation: ...
Discuss how inventory should be used by the manager to maximize profit. How does LIFO affect income if prices increase, decrease, or remain the same? How about for FIFO? How will relating product contribution margins to the amount of the constrained resource they...
Inventory turnover ratio dropped from 4.50 in 1986 to 3.22 in 1987. Days to sell inventory increased Premium Generally Accepted Accounting Principles Balance sheet Accounts receivable 496 Words 2 Pages Good Essays Read More Crazy Eddie Crazy Eddie Case Questions 1. Compute key ratios and...
How is inventory turnover calculated? Explain the accounting equation and how this equation relates to both the balance sheet and the income statement. What do you understand by the term accounting? How do you calculate the asset turnover ratio?
Answer to: A high inventory turnover ratio provides evidence that a company is having problems with stockouts and disgruntled customers. Do you...
12K Inventory turnover is the ratio of how much a company has sold its products and replaced its supply during a specific period of time. Learn more about the definition of inventory turnover, formulas used for computing it, and the calculation steps for determining i...
Why is Sales not included in the calculation of the Inventory Turnover Ratio? What is a margin of safety? What is the margin of safety? What is the difference between gross profit and net profit? Explain. Discuss what the P/E ratio is and the importance of the PE ratio. ...
What does the accounts receivable turnover ratio measure? A. How quickly accounts receivable turn into cash. B. Average balance of accounts receivables. C. How quickly the accounts receivable balance increases. D. How quickly inventory turns into account ...
Business Finance Financial ratio Explain how to calculate Account Receivable Turnover and Inventory Turnover.Question:Explain how to calculate Account Receivable Turnover and Inventory Turnover.Financial Ratios:Financial ratios are significant because they provide valuable insights into a company'...