A companys inventory turnover is one measure of its potential to convert inventory into cash. But what
Question:
A company’s inventory turnover is one measure of its potential to convert inventory into cash. But what is considered a good inventory turnover? The answer to that question depends on a variety of industry and company characteristics. Access the EDGAR database at the following Internet address: www.sec.gov Locate the most recent 10-K reports of a company that deals primarily with perishable products, like Publix or Kroger, and a company that deals primarily in a non-perishable products, like Staples, Inc. or Lowes. Compute the inventory turnover of each company you choose. Does the higher turnover computed for the company dealing with perishable products mean that company manages its inventory more effectively than the company dealing with non-perishable products? Explain.
Step by Step Answer:
Financial And Managerial Accounting The Basis For Business Decisions
ISBN: 9781260247930
19th Edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello