Which of the following is the correct formula for calculating days' sales in raw materials inventory for a manufacturer?
A. Raw materials used/Beginning raw materials inventory × 365.
B. Average raw materials inventory/Raw materials used.
C. Ending raw materials inventory/Raw materials used × 365.
D. Raw materials purchased/Average raw materials inventory.
E. Raw materials used/Average raw materials inventory.
Answer: C
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Which of the following transactions would be recorded in the financing section?
a. paying a note payable b. issuing stocks c. paying dividends d. Both a and b answers are correct. e. Both b and c answers are correct.
McMahon and Tate advertising company is interested in an appropriate mix of print, radio, and television ads for their new client
Darrin Stevens performs a multiple regression on the effects of dollars spent on each type of media on dollars of sales of product. Darrin uses data from the most recent advertising campaigns and develops the following equation: y = 254,215 + 6.79 × Print - 1.4 × Radio + 16.87 × Television The r-squared statistic is 0.77. Which of the following statements is best? A) At a minimum, the client will sell $254,215 worth of product after the new advertising campaign. B) At a maximum, the client will sell $254,215 worth of product after the new advertising campaign. C) This equation will be of no use in predicting the amount of sales based on advertising in these media. D) The client should spend more money on television advertising than on radio advertising.
A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful
Indicate whether the statement is true or false
Garrott Corporation's total assets were $1,505,000 at the end of Year 2 and $1,520,000 at the end of Year 1. Its total stockholders' equity was $1,197,000 at the end of Year 2 and $1,180,000 at the end of Year 1.Income StatementFor the Year Ended December 31, Year 2Sales (all on account)$1,340,000 Cost of goods sold 830,000 Gross margin 510,000 Operating expenses 465,143 Net operating income 44,857 Interest expense 9,000 Net income before taxes 35,857 Income taxes (30%) 10,757 Net income$ 25,100 The company's return on total assets for Year 2 is closest to:
A. 2.09% B. 1.67% C. 2.08% D. 1.66%