a. Why is a high inventory turnover considered to be a positive indicator?b. Is it possible to have a high inventory turnover and a high number of days’ sales in inventory? Why?

Q: QUESTION 4 A firm has a high level of inventory turnover and uses the First lIn First Out (FIFO)…

A: Inventory: Inventory is a physical item of trade sold by suppliers during their accounting period.…

Q: 7 During a period of steadily rising prices, which one of the following inventory valuation methods…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Explain the two methods of inventory tracking: inventory turnover ratio and number of days' sales in…

A:

Q: Identify that if prices are rising, which inventory cost flow method will produce the highest amount…

A: solution Identify that if prices are rising, which inventory cost flow method will produce the…

Q: Inventory Turnover Ratio shows the speed at which the Sales will be converted into cash. Select one:…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: For each item below, indicate whether FIFO or LIFO will generally result in a higher reported amount…

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: In calculating inventory turnover, why is cost of goods sold used as the numerator? As the inventory…

A: Inventory turnover ratio:Inventory turnover ratio is used to determine the number of times inventory…

Q: If the inventory is valued at cost and the price level is steadily increasing, which type of…

A: Under FIFO, goods that are purchased initially are sold first, however, under LIFO it is assumed…

Q: Which of the following variations of the retail inventory method would generally result in the…

A: Rising prices basically means the situation where the prices of inventory keep on rising with each…

Q: Which of the following might be attributed to efficient inventory management? Select the correct…

A: All of the choices given

Q: An increasing inventory turnover ratio indicates that: a.a company has reduced the time it takes to…

A: The inventory turnover ratio indicates the efficiency of a business to purchase and selling its…

Q: multiple choice: Which of the following statements is TRUE? A. The inventory turnover ratio shows…

A: Ratio Analysis provides insights into the performance of the company based on various parameters.

Q: Which of the following is a measure of profitability? Select one: a. Inventory turnover b. Return on…

A: The ratio analysis helps to analyse the financial statements of the business.

Q: What does a very high inventory turnover ratio signify? Please provide your own example to explain…

A: Inventory turnover ratio is one of the efficiency ratio, which says and calculates how many times…

Q: a. Based on Table 1, compute the company's supply chain performance in terms of inventory turnover…

A: The answer is stated below:

Q: Explain the purpose of the inventory turnover ratio? Is it possible for a firm to have a high…

A: In finance we make use of various financial ratios to determine the financial health of a company.…

Q: Johnson would like to know the inventory turnover ratio. You may tell Johnson to a. Divide cost of…

A: Inventory turnover ratio provide the number of times inventory comes and is sold in a year.

Q: How can accounting keep up with the rising sales return rates, especially when it comes to inventory…

A: Management of inventories: Inventory management may be characterized as a system for measuring and…

Q: The inventory turnover ratio a. measures management’s ability to productively employ all of…

A: No, option “d” is not the correct answer.

Q: Assuming no beginning inventory, what can be said about the trend of inventory prices if cost of…

A: The Various methods used to valuate inventory are (1) Last In, First Out (LIFO) (2) First In, First…

Q: The gross profit technique implies that A. The value of the inventory has not grown from prior…

A: The amount of ending inventory for a reporting period is estimated using the gross profit technique.…

Q: What is Return on Assets? How do you calculate Inventory Turnover and The Number of Days' Sales in…

A: P

Q: Which inventory cost flow assumption would consistently result in the highest income in a period of…

A: Inventory valuation is done at the end of the accounting period and different inventory valuation…

Q: Which inventory costing method results in the lowest net income during a period of rising inventory…

A: In case of LIFO method, most of the cost of goods sold is calculated at the latest price since the…

Q: Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select…

A: Introduction: Inventory turnover ratio is one of the financial ratios which is computed by any…

Q: Which of the following is false? Select one: a. Days’ sales in inventory is equal to the average…

A: Option “B” is False.

Q: A company experiences inventory shrinkage and records the proper entry to account for it. As a…

A: Inventory shrinkage: Any errors or losses of merchandise due to breakage, theft or spoilage are…

Q: During a period when inventory costs are steadily increasing, which of the following is true? O a.…

A: FIFO considers the cost of initial purchases as the cost of goods sold and the later purchases as…

Q: An increasing inventory turnover ratioa. Indicates a longer time span between the ordering…

A: Increased inventory turnover ratio:- It indicates companies are quickly selling their goods in the…

Q: Which of the following is false? Select one: a. Day's sales in inventory is equal to the average…

A: The correct option is part (b), that is higher day’s sales in inventory means that inventory is less…

Q: Is it possible to have a high inventory turnover and a high number of days’ sales in inventory? Why?

A: Inventory Turnover is calculated to measure the level of inventory hold by the firm compared to…