9) A company's net sales revenues are $1,000,000. Its cost of goods sold is $400,000. Which of the following is its gross profit percentage?
A) 40%
B) 60%
C) 167%
D) 250%
10) A company's cost of goods sold is $1,000,000. Its average inventory is $100,000. Which of the following is its rate of inventory turnover?
A) .01
B) .1
C) 10
D) 100
11) A company's net sales revenue is $20,000,000. Its cost of goods sold is $15,000,000. Its beginning inventory is $100,000, and its ending inventory is $200,000. Which of the following is its rate of inventory turnover?
A) 01
B) 0.1
C) 10
D) 100
12) Which of the following is used to determine the rate of inventory turnover?
A) Cost of goods sold divided by Gross profit
B) Cost of goods sold divided by Average inventory
C) Cost of goods sold times Average inventory
D) Cost of goods sold times Gross profit
13) Alpha Company had $45,000 in beginning inventory and $80,000 in ending inventory. Cost of goods sold for the period was $25,000. The inventory turnover is:
A) 0.56.
B) 0.3125.
C) 0.4.
D) 4.0.
14) A high rate of inventory turnover indicates which of the following?
A) The company is losing inventory to shrinkage.
B) The company is making high net income.
C) The company is experiencing a rapid decline in inventory levels.
D) The company sells its inventory rapidly.
15) Beginning inventory is $42,000; Ending inventory is $58,000. Cost of Goods Sold is $600,000. How much is the inventory turnover?
A) 10.3
B) 14.3
C) 12.0
D) 1.2
16) Beginning inventory is $42,000; Ending inventory is $58,000. Cost of Goods Sold is $600,000. Please calculate days in inventory.
A) 30.4
B) 25.6
C) 135.3
D) 3.4
17) Inventory turnover is 8.0. Please calculate days in inventory.
A) 14.5
B) 2.5
C) 57.0
D) 45.6
18) Smith Company has a low number of days in inventory. This indicates that:
A) their inventory sales are producing low profits.
B) the cost of inventory is very high.
C) the company has a low gross profit percentage.
D) their inventory is turning over rapidly.