he following information is available for Sheffield Company at December 31, 2020: beginning inventory $139000; ending inventory 121000; cost of goods sold $845000; and sales $1880000. Sheffield's inventory turnover in 2020 is 618 times

he following information is available for Sheffield Company at December 31, 2020: beginning inventory $139000; ending inventory 121000; cost of goods sold $845000; and sales $1880000. Sheffield's inventory turnover in 2020 is 618 times

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC

See similar textbooks

Related questions

Q: Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston…

A: Note: The figure in requirement 3 is not clear, please post the question with clear figure of…

Q: 1. 2. 3. 4. 5. Current Attempt in Progress Comparative balance sheets for Waterway Company are as…

A: Business activities are defined as those events that result from the workings of an entity in order…

Q: Answer the following questions. Example of Answer: 4000 No comma, space, decimal point, or $ sign.…

A: Financial Statements - Financial Statements includes Income Statement, Statement of Stockholder's…

Q: West Midwest United States Southwest Mexico Northeast Southeast Southeast Net Sales: Net Income:…

A: Return on Asset = This ratio indicates that how a company manage its asset to generate revenue for…

Q: Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business…

A: An income statement is a type of financial statement that details the profits and losses of a…

Q: Mayfield Corporation has provided the following financial data: Balance Sheet Current assets: Cash…

A: Quick assets are highly liquid assets which can be converted into cash easily. Total current…

Q: ABC Company sells franchise arrangements throughout Luzon and Visayas. Under a franchise agreement,…

A: A company’s intangible asset is one that has been created or acquired but it cannot be seen by…

Q: Elegant Electronics sells a cellular phone on September 2 for $442. On September 6, Elegant sells…

A: Hi student Since there are multiple questions, we will answer only first question. Taxes are the…

Q: 1. Adam purchased a car for $24,995. According to his research, this make and model of car loses all…

A: The linear automobile depreciation method is commonly used by businesses that own and use…

Q: Tao Company has fixed costs of $886,220 Its single product sells for $490 per unit, and variable…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Elliott Company produces large quantities of a standardized product. The following information is…

A: Under this method while calculating equivalent units, the units in beginning are not considered…

Q: Laker Company reported the following January purchases and sales data for its only product. The…

A: Using FIFO method, the older inventory is sold first. The cost of goods sold is recorded with sales…

Q: Which of the following is NOT a characteristic of a SEP IRA? A SEP IRA is 100% vested at all times…

A: Answer:- SEP IRA meaning:- A business or a self-employed individual may establish a simplifies…

Q: Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $48…

A: A Capital gain is the increased of the asset and it is realised when we sell an asset or an…

Q: activity of 17,100 hours: Direct Materials (6 ft. x $5/ft) Direct Labor (1.6 hrs.x $10/hr)…

A: Standard Price = $10 Actual Production = 12,100 Standard hours for actual Production = actual…

Q: Stark company has the following adjusted accounts and normal balances at its year-end, March 31,…

A: Trial balance is the statement which is prepared by the entity to list the balances of the ledger…

Q: Ptarmigan Company produces two products. Product A has a contribution margin of $221.10 and requires…

A: Calculation of Contribution margin per machine hour as follows:- Contribution margin per machine…

Q: HHH Company provided for the following shareholders’ equity on December 31, 2020: Share capital,…

A: Shareholders equity is one of the important section of the balance sheet. It means total amount…

Q: True or False S1: A branch is able to report an investment in another branch of the home office, as…

A: The contingencies are events that depend on the happening or non-happening of some future…

Q: Jones Co. issued a $1,000 face amount 10-year bond and received $1,000 at the time of issuance.…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: Piedmont Company segments its business into two regions-North and South. The company prepared the…

A: Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Q: Journalize each of the following transactions assuming a perpetual inventory system. Sold…

A: The journal entries are prepared to record the transactions on regular basis. The perpetual…

Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…

A: Payroll Taxes: The taxes that are paid by both the employer and the employee to support the…

Q: Required information [The following information applies to the questions displayed below.] The…

A: HORIZONTAL ANALYSIS Horizontal Analysis is one of the Important analysis techniques of financial…

Q: On July 1 the Skysong, Inc. paid $19680 to Acme Realty for 6 months rent beginning July 1. Prepaid…

A: The prepaid rent is the amount of rent expense paid in advance by the business. The prepaid rent is…

Q: Following are separate income statements for Austin, Inc., and its 80 percent–owned subsidiary, Rio…

A: Basic Earnings Per Share(EPS)- Basic EPS is how much shareholders can earn on a single share Diluted…

Q: Personal budget At the beginning of the school year, Craig Kovar decided to prepare a cash budget…

A: The cash budget records the cash inflow and cash outflow transactions during the period. Cash inflow…

Q: Consider a family that has one working parent, a stay‐at‐home parent, and three children. Two of the…

A: The following formulas used as follows under:- 1)Assets - Things the family owns such as cash, bank…

Q: Which of the following goals is accomplished when an audit process occurs at the end of the budget…

A: At the conclusion of the audit, auditors are required to issue the audit report in which they give…

Q: Telephone Total Payments II. Balance I. III. ▪. Answer the following questions relating to the…

A: Variance analysis is a tool used to compare actual results to budgeted or expected results, in order…

Q: Prepare a March 31, 2023 balance sheet (in the proper format) for Wood Shinning Vending Servicefrom…

A: financial statements are a critical or important tool for evaluating the financial health of a…

Q: Osprey Cycles, Inc., projected sales of 69,359 bicycles for the year. The estimated January 1…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: Blaze Corporation allocates overhead on the basis of DLH and the standard amount per allocation base…

A: The overhead rate is calculated as total overhead costs divided by estimated base activity. The…

Q: calculate the contribution, the margin of safety and the break even point

A: Contribution margin per unit = Selling Price per unit - Variable cost per unit

Q: Using the tables in Exhibits 26-3 and 26-4, determine the present value of the following cash flows,…

A: A sum of money in the hand has greater value than the same sum to be paid in the future.

Q: Compute cash flows from financing activities using the below company information. $ 90,000 Cash…

A: Financing Activities :- Cash Flow From Financing Activities Section Of Statement Of Cash Flows - Net…

Q: Macee Store has three operating departments, and it conducts advertising that benefits all…

A: Advertising cost is the amount of cost incurred by the entity on the advertisement of the goods or…

Q: The expected average rate of return for a proposed investment of $767,000 in a fixed asset, with a…

A: The ratio analysis helps to analyze the Financial statements of the business based on various…

Q: 60000 5. Luedtke Products manufactures laser printers within a relevant range of production of…

A: Variable Cost per unit remain same at all level of Production. While fixed Cost per unit decreases…

Q: What do businesses need to make variance analysis usefu

A: Standard costs are estimates of the actual costs in a company’s production process. Then, the actual…

Q: Bizara (Pty) Ltd manufactures two products. The following information is available for the financial…

A: Budgeting in accounting is the process of creating a plan for how a company will allocate its…

Q: Additional information about transactions and events occurring in 2024 follows: During 2023, the…

A: A contingent liability is a prospective obligation that could result from previous actions and whose…

Q: REI sells snowboards. Assume the following information relates to REI's purchases of snowboards…

A: FIFO stands for first in first out. LIFO stands for last in first out. Average cost per unit is…

Q: Vandezande Inc. is considering the acquisition of a new machine that costs $428,000 and has a useful…

A: Payback period is defined as the number of years required to recover the original cash investment.…

Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…

A: Computation of Profit from special order-Polaski Co. Particulars…

Q: On November 1, 2022, an advance rent payment of $15,000, representing a six-month prepayment (for…

A: As per dual concept of accounting, every transaction has dual impact on the books of accounts.…

Q: Required: A number of costs of the center and the Meals-On-Wheels program are listed below. For each…

A: Cost is the amount which incurred on the production of a product it may be of any type such as:-…

Q: Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and…

A: Contribution margin is difference between selling price and variable cost. If there is any…

Q: ear 023 1024 025 1026 Pretax Income (Loss) $119,000 112,000 (220,000) 300,000 Tax Rate 17% 17% 19%…

A: Tax Calculation for 2025 Deferred tax Asset to be created in 2025 = (220,000)*19% = 41,800 Allowance…

Q: Peyton's Palace has net income of $13.5 million on sales revenue of $115 million. Total assets were…

A: Ratio analysis is a quantitative method of getting inside review of an organisation. It helps in…

Question

Please do not give solution in image format thanku

The following information is available for Sheffield Company at December 31, 2020: beginning inventory $139000; ending inventory
$121000; cost of goods sold $845000; and sales $1880000. Sheffield's inventory turnover in 2020 is
6.18 times.
6.88 times.
6.50 times.
14.46 times.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction :-

VIEW

Step 2: Inventory Turnover Ratio

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
At December 31, 2019, the following information was available from Crisford Companys books: Sales for the year totaled 110,600; markdowns amounted to 1,400. Under the approximate lower of average cost or market retail method, Crisfords inventory at December 31, 2019, was: a. 30,800 b. 28.000 c. 21,560 d. 19,600
Assume your company uses the periodic inventory costing method, and the inventory count left out an entire warehouse of goods that were in stock at the end of the year, with a cost value of $222,000. How will this affect your net income in the current year? How will it affect next years net income?
Financial statement data for years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the days sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?
Financial statement data for years ending December 31 for Tango Company follow: a. Determine the inventory turnover for 20Y7 and 20Y6. b. Determine the days sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place. c. Does the change in inventory turnover and the days sales in inventory from 20Y6 to 20Y7 indicate a favorable or an unfavorable trend?
Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Beginning inventory, purchases, and sales for 30xT are as follows: Assuming a perpetual inventory system and using the weighted average method, determine (a) the weighted average unit cost after the May 23 purchase, (b) the cost of the merchandise sold on May 26, and (c) the inventory on May 31.
The following items were included in Venicio Corporations inventory account on December 31, 2019: What amount should Venicio report as inventory at December 31, 2019? a. 21,000 b. 20,400 c. 26,000 d. 35,000