Financial accounting questions,need answer The inventory turnover is calculated

Question

Financial accounting questions,need answer

The inventory turnover is calculated by dividing cost of goods sold by beginning inventory. ending inventory. average inventory. 365 days. The amount of cost of good available for sale during the year depends on the amounts of beginning merchandise inventory and cost of goods sold. beginning merchandise inventory, net cost of purchases, and ending merchandise inventory. beginning merchandise inventory, cost of goods sold, and ending merchandise inventory. beginning merchandise inventory and net costs of purchases. A merchandiser will earn an operating income of exactly $0 when net sales equals cost of goods sold. cost of goods sold equals gross margin. operating expenses equal net sales. gross profit equals operating expenses. At the beginning of the year, Uptown Athletic had an inventory of $400, 000. During the year, the company purchased goods costing $1, 500, 000. If Uptown Athletic reported ending inventory of $500, 000 and sales of $2, 000, 000, their cost of goods sold and gross profit rate would be $1, 000, 000 and 70%. $1, 400, 000 and 30%. $1, 000, 000 and 30%. $1, 400, 000 and 70%. Cash equivalents include money market accounts, commercial paper, and U.S. treasury bills held for ninety days or less. True or False

Explanation / Answer

1) c ) Average Inventory

2) d.) beginning merchandise inventory and net of cost of purchases

3) d.) gross profit equals operating expenses

4) Cost of good sold = 400,000+1,500,000-500,000 = $1,400,000

Gross profit rate = 600,000/2,000,000 = 30%

b) $1,400,000 and 30%

5) True

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