/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Question E9-23 The financial statements of ConA... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 9: Question E9-23 (page 481)

The financial statements of ConAgra Foods, Inc.鈥檚 2014 annual report disclose the following information. (in millions) 2014 2013 2012 Year-end inventories \(2,201 \)2,077 \(2,341 Fiscal Year 2014 2013 Net sales \)17,703 $15,427 Cost of goods sold 13,980 11,864 Net income 315 786Instructions Compute ConAgra鈥檚 (a) inventory turnover and (b) the average days to sell inventory for 2014 and 2013.

Short Answer

Expert verified
  1. Inventory turnover for 2013 and 2014 equals 5.37 times and 6.54 times.
  2. Average days to sell inventory for 2013 and 2014 equals 67.97 days and 55.81 days

Step by step solution

01

Calculation of inventory turnover for 2013

Inventory turnover for 2013 is calculated as follows:

InventoryTurnoverfor2013=CostofGoodsSoldBeginningInventory+EndingInventory2=$11,864$2,341+$2,0772=5路37

02

Calculation of average days to sell inventory for 2013

Average days to sell inventory is calculated as follows:

AverageDaystoSellInventory=365InventoryTurnoverfor2013=3655.37=67路97Days

03

Calculation of inventory turnover for 2014

Inventory turnover for 2014 is calculated as follows:

InventoryTurnoverfor2014=CostofgoodssoldBeginningInventory+EndingInventory2=$13,980$2,077+$2,2012=6路54

04

Calculation of average days to sell inventory for 2014

Average days to sell inventory is calculated as follows:

AverageDaystoSellInventory=365InventoryTurnoverfor2014=3656路54=55路81Days

Thus inventory turnover for 2013 and 2014 is 5.37 and 6.54, and the average days to sell inventory for 2013 and 2014 are 67.97 days and 55.81 days.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Starfish Company (a company using GAAP and the LIFO inventory method) is considering changing to IFRS and the FIFO inventory method. How would a comparison of these methods affect Starfish鈥檚 financials? (a) During a period of inflation, working capital would decrease when IFRS and the FIFO inventory method are used as compared to GAAP and LIFO. (b) During a period of inflation, the taxes will decrease when IFRS and the FIFO inventory method are used as compared to GAAP and LIFO. During a period of inflation, net income would be greater if IFRS and the FIFO inventory method are used as compared to GAAP and LIFO. (d) During a period of inflation, the current ratio would decrease when IFRS and the FIFO inventory methodare used as compared to GAAP and LIFO.

Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2017, consists of products D, E, F, G, H, and I. Relevant per unit data for these products appear below. Using the LCNRV rule, determine the proper unit value for statement of financial position reporting purposes at December 31, 2017, for each of the inventory items above.

(Dollar-Value LIFO Retail) You assemble the following information for Seneca Department Store, which computes its inventory under the dollar-value LIFO method. Cost Retail Inventory on January 1, 2017 \(216,000 \)300,000 Purchases 364,800 480,000 Increase in price level for year 9% Instructions Compute the cost of the inventory on December 31, 2017, assuming that the inventory at retail is (a) \(294,300 and (b) \)365,150.

In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases. Cases 1 2 3 4 5 Cost \(15.90 \)16.10 \(15.90 \)15.90 $15.90 Sales price 14.80 19.20 15.20 10.40 17.80 Estimated cost to complete 1.50 1.90 1.65 .80 1.00 Estimated cost to sell .50 .70 .55 .40 .60

Question:What are the major uses of the gross profit method?
See all solutions

Recommended explanations on Business Studies Textbooks

Managers

Read Explanation

Actuarial Science in Business

Read Explanation

International Business

Read Explanation

Startups

Read Explanation

Business Data Analytics

Read Explanation

Strategic Analysis

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.