The Following Data Were Taken from the Annual Reports of Jong

question 11

Essay

The following data were taken from the annual reports of Jong Inc. ,a manufacturer of fireworks,and Hobson Inc. ,a manufacturer of computers.

(a)Determine the (1)inventory turnover and (2)number of day's sales in inventory for Jong and Hobson.Round your answer to two decimal places.

(b)How would you expect these measures to compare between the companies? Why?

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Adjusting Entries

Records entered into accounting logs at the close of an accounting period to assign earnings and expenses to the period they truly happened.

Worksheet

A document or spreadsheet used in accounting to compile data and calculations for reporting purposes.

Income Statement

A financial document summarizing a company's revenues, expenses, and profits over a specific period, showing its operational performance.