cuny STUDENTS History: HW D click here then... Cha Pre-Built Problems Saved Help

Question

cuny STUDENTS History: HW D click here then... Cha Pre-Built Problems Saved Help The King Corporation has ending inventory of $480,940, and cost of goods sold for the year just ended was $4,352,507. What is the inventory turnover? (Do not round Intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) What is the days' sales in inventory? (Use 365 days a year. Do not round Intermediate calculations. Round your answer to 2 decimal places, e.g. 32.16.) How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) a. b. c. a. Inventory turnover b. Days sales in inventory c. Days on shelf in inventory times days days

Explanation / Answer

Solution-

a. Inventory Turnover- Cost of Goods Sold / Ending inventory

Inventory Turnover= 43,52,507/4,80,940= 9.05 times

b. Days sales in Inventory = 365/ Inventory Turnover

Days sales in Inventory = 365/9.05= 40.33 days (approx)

c. Time before Inventory is sold = 40.33 days (approx)

Answer 2

ROE= Profit Margin * Total assets turnover * leverage

18.74=6.6 *1.7 * leverage

Leverage = 18.74/6.6*1.7= 1.6702317

Leverage = Total assets / equity

1.6702317= Total assets / equity

Total assets = 1.6702317equity

Total assets= Debt + Equity

1.6702317 equity = Debt + Equity

1.6702317 Equity - Equity = Debt

0.6702317 Equity = Debt

Debt Equity ratio = Debt / Equity

Debt Equity ratio= 0.6702 ( approx)

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