Practice: ABC Company had $200,000 in Net Sales and Gross Profit of $80,000. If Inventory had a balance of $60,000, what is the Inventory Turnover ratio?

Subjects

Additional Practice |
---|

Ratios Cumulative Problems |

Practice: ABC Company had $200,000 in Net Sales and Gross Profit of $80,000. If Inventory had a balance of $60,000, what is the Inventory Turnover ratio?

0 of 2 completed

Concept #1: Ratios: Inventory Turnover

Practice #1: Inventory Turnover

Consider the following:
Calculate the inventory turnover.
A) 2.55
B) 2.80
C) 2.33
D) 2.00

Dagen Haaz, Inc., an ice cream manufacturer had the following information available related to its inventory for 2014:
What is Dagen Haaz's inventory turnover for 2014?
a. 18.64
b. 56.36
c. 34.30
d. 62.00

Consider the following financial data for Smith Corp.:
Compared to other firms in the same industry, Smith.
a. is using its total assets to generate sales more efficiently.
b. finances a greater percentage of its assets with debt.
c. has lower short-term liquidity ratios.
d. generates less profit per dollar of shareholders' equity.
e. none of the above.

The inventory turnover ratio would be most important when analyzing a(n)...
a. commercial bank.
b. insurance company.
c. consulting firm.
d. grocery store.
e. medical clinic.

Enter your friends' email addresses to invite them:

We invited your friends!

Join **thousands** of students and gain free access to **12 hours** of Accounting videos that follow the topics **your textbook** covers.