As a result of taking a physical inventory count on December 31, 2016, the Mona Lisa Company inventory was determined to be $61,500. The auditors for Mona Lisa suspected an inventory shortage and used the gross profit method to estimate the ending inventory. The accounting records for the company contained the following information: Inventory (1/1/16) $ 130,000 Purchases (2016) 760,000 Sales
(2016) 1,020,000 Sales returns (2016) 60,000 Gross profit ratio 25% of sales Using the gross profit method, what did the auditors estimate as the amount of the inventory that should have been on hand at December 31, 2016?
A) $240,000
B) $170,000
C) $125,000
D) $ 61,500
B
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The ratio of net sales to assets is calculated as ________
a. Net Sales / Total Assets b. Average Total Assets / Net Sales c. Current Assets / Current Liabilities d. Net Sales / Average Total Assets
The following balance sheet information is provided for Duke Company for Year 2:Assets Cash$5,400 Accounts receivable 15,500 Inventory 18,000 Prepaid expenses 1,600 Plant and equipment, net of depreciation 20,200 Land 19,950 Total assets$80,650 Liabilities and Stockholders' Equity Accounts payable$4,500 Salaries payable 11,500 Bonds payable (due in ten years) 19,000 Common stock, no par 30,000 Retained earnings 15,650 Total liabilities and stockholders' equity$80,650 What is the company's current ratio? (Round your answer to 2 decimal places.)
A. 2.53 B. 1.16 C. 3.79 D. 1.31
Early supplier involvement is a program that allows suppliers to fill orders prior to the customer placing them
Indicate whether the statement is true or false
Ending inventory at the end of each period is given by ______.
a. Ending inventory = Beginning inventory of each period + Production in that period b. Ending inventory = Beginning inventory of each period + Production in that period – Forecasted demand in that period c. Ending inventory = Beginning inventory of each period – Production in that period d. Ending inventory = Beginning inventory of each period – Production in that period + Forecasted demand in that period