Question Details

Calculate Harper's inventory turnover ratio 



1.	Assuming a starting point of a 1:1 relationship, state the effect of the following transactions on the current ratio. Use increase, decrease, or no effect for your answer.

A.	Collection of an accounts receivable.
B.	Declaration of cash dividends.
C.	Additional stock is sold for cash.
D.	Short-term investments are purchased for cash.
E.	Equipment is purchased for cash.
F.	Inventory purchases are paid for cash.


2.	Presented below are selected data from the financial statements of Harper Company for 2014, 2013, and 2012.

	2014	2013	2012
Total assets	$1,205,000	$952,000	$945,000
Cost of goods sold	360,000	420,000	440,000
Inventory	56,000	64,000	53,000
Net income	65,000	25,000	16,000

A.	Calculate Harper's inventory turnover ratio for 2014 and 2013.
B.	Calculate the number of days in inventory at December 31, 2014. At December 31, 2013. Assume 365 days in a year.
C.	Explain the implications of your calculations with respect to inventory management.




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help