120.Refer to the information above. Estimate the cost of the May 31 inventory using the retail method.
A. $116,964.
B. $137,400.
C. $150,425.
D. $204,000.
121.Refer to the information above. Estimate the cost of goods sold for May using the retail method. (Round your final answer to the nearest dollar value.)
A. $116,964.
B. $150,400.
C. $205,236.
D. $319,600.
Soriano Company had net sales of $300,000 for the month (after returns and allowances of $1,500 and sales discounts of $3,250). Beginning inventory for the month was $60,000; purchases for the month were $175,000; and gross profit was 43%.
122.Refer to the information above. What were the gross sales for the month?
A. $129,000.
B. $171,000.
C. $300,000.
D. $304,750.
123.Refer to the information above. What were the goods available for sale for the month?
A. $129,000.
B. $171,000.
C. $235,000.
D. $304,750.
124.Refer to the information above. What was the gross profit for the month?
A. $129,000.
B. $171,000.
C. $235,000.
D. $304,750.
125.Refer to the information above. What was the cost of goods sold for the month?
A. $129,000.
B. $171,000.
C. $235,000.
D. $304,750.
126.Refer to the information above. What was the ending inventory for the month?
A. $60,000.
B. $64,000.
C. $129,000.
D. $175,000.
127.A company with a liquid inventory will have:
A. A high inventory turnover and a high average number of days to sell inventory.
B. A high inventory turnover and a low average number of days to sell inventory.
C. A low inventory turnover and a high average number of days to sell inventory.
D. A low inventory turnover and a low average number of days to sell inventory.
128.The inventory turnover rate provides an indication of how quickly the average quantity of inventory on hand:
A. Spoils.
B. Sells.
C. Increases.
D. Converts into cash.
129.Busch, Inc. is a successful company, but has a lower inventory turnover rate than the industry average. Of the following, the most likely explanation is that Busch:
A. Has a just-in-time inventory system.
B. Uses LIFO (assume rising purchase costs).
C. Offers its customers an unusually large selection of merchandise.
D. Sells unusually popular items.
130.Short-term creditors are likely to view a higher-than-average inventory turnover rate as indicating that:
A. A company is in financial difficulty.
B. The company is able to sell its inventory quickly.
C. The company probably has an excessive amount of inventory.
D. The company has a longer-than-average operating cycle.
131.Which of the following types of businesses would you expect to have the highest inventory turnover?
A. An antique shop.
B. An electronics store.
C. A dairy store.
D. A boat manufacturer.
During the current year, Carl Equipment Stores had net sales of $600 million, a cost of goods sold of $500 million, average accounts receivable of $75 million, and average inventory of $50 million.
132.Refer to the information above. Carl Equipment's inventory turnover rate is:
A. 6.7 times.
B. 10 times.
C. 12 times.
D. 1.2 times.
133.Refer to the information above. Assuming a 365-day year, the average number of days required for Carl Equipment to sell its inventory is: (Round your final answer to one decimal place.)
A. 36.5 days.
B. 73.0 days.
C. 24.3 days.
D. 304.2 days.
During the current year, Carlin Equipment Stores had net sales of $500 million, a cost of goods sold of $400 million, average accounts receivable of $60 million, and average inventory of $50 million.
134.Refer to the information above. Carlin Equipment's inventory turnover rate is:
A. 6.7 times.
B. 8 times.
C. 10 times.
D. 1.25 times.
135.Refer to the information above. Assuming a 365-day year, the average number of days required for Carlin Equipment to sell its inventory is: (Round your final answer to one decimal place)
A. 36.5 days.
B. 45.6 days.
C. 54.4 days.
D. 292 days.