P315 Inventory management Wilkins Manufacturing has annual sales of $4 million and a gross profit margin of
Question:
P3–15 Inventory management Wilkins Manufacturing has annual sales of $4 million and a gross profit margin of 40%. Its end-of-quarter inventories are
a. Find the average quarterly inventory and use it to calculate the firm’s inventory turnover and the average age of inventory.
b. Assuming that the company is in an industry with an average inventory turnover of 2.0, how would you evaluate the activity of Wilkins’ inventory?
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Related Book For
Principles Of Managerial Finance
ISBN: 9780133546408
7th Edition
Authors: Lawrence J Gitman, Chad J Zutter
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