ces The table below contains selected information from recent financial statements of The Tool Station, Incorporated, and Howard's Companies, Incorporated, two companies in the home improvement retail industry ($ in millions): Net sales Cost of goods sold Year-end inventory Tool Station Howard's Tool Station Howard's Tool Station Tool Station Howard's 1/28/2020 $ 101,704 67,348 13,548 Required: Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies for their fiscal years ending in 2020. Note: Use 365 days a year. Round "Inventory turnover ratio" to 2 decimal places. Enter dollar amounts in millions rounded to the nearest whole number. Choose Numerator: Net sales Choose Numerator: 1/29/2019 $ 95,395 63,082 13,349 Choose Numerator: + + Gross Profit Ratio + + Inventory Turnover Ratio + + 2/2/2020 $ 69,419 46,010 12,193 + + + Howard's Average Days in Inventory + Choose Denominator: 2/3/2019 $ 65,817 43,353 11,258 Choose Denominator: Choose Denominator: E = = = = = = = = = Gross Profit Ratio Gross profit ratio Inventory Turnover Ratio Inventory turnover ratio 0% 0% 0 times 0 times Average Days in Inventory Average days in inventory 0 days 0 days

ces The table below contains selected information from recent financial statements of The Tool Station, Incorporated, and Howard's Companies, Incorporated, two companies in the home improvement retail industry ($ in millions): Net sales Cost of goods sold Year-end inventory Tool Station Howard's Tool Station Howard's Tool Station Tool Station Howard's 1/28/2020 $ 101,704 67,348 13,548 Required: Calculate the gross profit ratio, the inventory turnover ratio, and the average days in inventory for the two companies for their fiscal years ending in 2020. Note: Use 365 days a year. Round "Inventory turnover ratio" to 2 decimal places. Enter dollar amounts in millions rounded to the nearest whole number. Choose Numerator: Net sales Choose Numerator: 1/29/2019 $ 95,395 63,082 13,349 Choose Numerator: + + Gross Profit Ratio + + Inventory Turnover Ratio + + 2/2/2020 $ 69,419 46,010 12,193 + + + Howard's Average Days in Inventory + Choose Denominator: 2/3/2019 $ 65,817 43,353 11,258 Choose Denominator: Choose Denominator: E = = = = = = = = = Gross Profit Ratio Gross profit ratio Inventory Turnover Ratio Inventory turnover ratio 0% 0% 0 times 0 times Average Days in Inventory Average days in inventory 0 days 0 days

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter7: Inventories

Section: Chapter Questions

Problem 7PA: Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks...

See similar textbooks

Similar questions

The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
Selected data on merchandise inventory, purchases, and sales for Celebrity Tan Co. and Ranchworks Co. are as follows: Instructions 1. Determine the estimated cost of the merchandise inventory of Celebrity Tan Co. on August 31 by the retail method, presenting details of the computations. 2. a. Estimate the cost of the merchandise inventory of Ranchworks Co. on November 30 by the gross profit method, presenting details of the computations. b. Assume that Ranchworks Co. took a physical inventory on November 30 and discovered that 369,750 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during March through November?
Directions: Show the computation, in proper format, of net sales, cost of goods soid, and gross profit for the year ended December 31, 2020 using lthe given data. Write your answer in the box provided. II. ABC Company data: Merchandise inventory, beginning PHP 20,000 Merchandise inventory, ending 23,000 Purchases 215,000 Purchases discounts 6,000 Purchases returns and allowances 3,000 400,000 Sales 3,200 Sales discounts 1,800 Sales returns and allowances 10,000 Freight-in
Calculate the average inventory (in $) and inventory turnover ratio for the given company. (Round the inventory turnover ratio to one decimal place.) Company BeginningInventory EndingInventory AverageInventory Cost ofGoods Sold InventoryTurnover an online gift retailer $856,630 $943,580 $ $3,337,500
The following information is from Gbane Company's accounting records for the year ended December 31: Purchases $218,400 Transportation-in 13,200 Inventory, January 1 31,800 Inventory, December 31 34,560 Purchase Returns and Allowances 10,080 Using the cost of goods sold model, how much will the company report as its cost of goods sold in its income statement for the year ended December 31?
Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown below. (Round to nearest tenth.) Revenue Gross Sales Less: Sales Returns and Allowances $182,000 ??? 11,900 170,100 Net Sales Cost of Goods Sold Merchandise Inventory, Jan. 1 70,150 Net Purchases 58,300 Goods Available for Sale 128,450 Less: Merchandise Inventory, Dec. 31 85,000 Cost of Goods Sold 43,450 Gross Margin 126,650
Presented below is information related to Marigold Company. Beginning inventory Purchases (net) Net markups Net markdowns Sales revenue (a) Cost $ 53,460 128,370 Ending inventory Compute the ending inventory at retail. Retail $100,800 217,500 10,863 26,515 198,640 $
Applying the Cost of Goods Sold Model Charest Company has the following data for 2022: Item Units Cost Inventory, 12/31/2021 980 $10,780 Purchases 4,480 49,280 Inventory, 12/31/2022 750 8,250 Required: 1. How many units were sold? 2. Using the cost of goods sold model, determine the cost of goods sold.