Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the following information is available for sheffie

The following information is available for Sheffield Company at December 31, 2018: beginning inventory $139000; ending...

Free

70.2K

Verified Solution

Question

Finance

The following information is available for Sheffield Company atDecember 31, 2018: beginning inventory $139000; ending inventory$121000; cost of goods sold $845000; and sales $1880000.Sheffield’s inventory turnover in 2018 is 14.5 times. 6.2 times.6.5 times. 6.9 times.

Answer & Explanation Solved by verified expert
3.6 Ratings (566 Votes)

Information provided:

Beginning inventory= $139,000

Ending inventory= $121,000

Cost of goods sold= $845,000

Sales= $188,000

Inventory turnover is calculated using the below formula:

Inventory Turnover= Cost of Goods Sold/Average Inventory

                                      = $845,000/ ($139,000 + $121,000/2)

                                      = $845,000/ 130,000

                                      = 6.5 times.

Hence, the answer is option c.

In case of any query, kindly comment on the solution.
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

The following information is available for Sheffield Company atDecember 31, 2018: beginning inventory $139000; ending inventory$121000; cost of goods sold $845000; and sales $1880000.Sheffield’s inventory turnover in 2018 is 14.5 times. 6.2 times.6.5 times. 6.9 times.

Other questions asked by students

Biology
1.2K views

Explain how energy is harnessed by and then flows through ecosystems. Describe the major trophic levels....

Medical Sciences
1.2K views

What are the effects of the following hormones? Where are they secreted? What are their targets...

Biology
1.2K views

Which of the following mutation is the least lethal form?O Insertion mutationO missense mutationO nonsense...

Biology
1.2K views

Time left 0 55 A population of bacteria is found to have resistance to an...

Biology
1.2K views

Which of the following is NOT one of the four characteristics of a malignant melanoma...

Geometry
1.2K views

A curve with polar equation r =8/3 sin 019 cos 0represents a line. This line...

Algebra
1.2K views

Rationalize the denominator and simplify if possible 75 O UN 2 of 5 02 5...

Algebra
1.2K views

A lake near the Arctic Circle is covered by a thick sheet of ice during...

Accounting
1.2K views

On January 1, 2024, Wright Transport sold four school buses to the Elmira School District....

Accounting
1.2K views

identify 5 differences in format of statement of financial position used by Louis Vuitton compared...

Accounting
1.2K views

If the short-run supply curve, the demand curve, and the long-run supply curve all intersect...

Accounting
1.2K views

If D0=$1.80,g (which is constant) =4.0%, and P0=$56, what is the stock's expected dividend yieid...