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5.45 is correct. I fixed that and it didn't update Problem 3-14 Norton Industries recorded total cost of goods sold for 20x2 of $6.4 million.
5.45 is correct. I fixed that and it didn't update
Problem 3-14 Norton Industries recorded total cost of goods sold for 20x2 of $6.4 million. Norton had the following inventory balances for the months indicated (end of period balances): In Millions December, 20X1 $1.25 January, 20X2 1.65 February, 20x2 1.70 1.40 March, 20x2 April, 20x2 1.66 May, 20x2 1.93 June, 20X2 1.41 July, 20X2 1.81 August, 20X2 1.78 September, 20X2 1.25 1.61 October, 20X2 November, 20x2 1.63 December, 20x2 1.10 a. Compute inventory turnover for Norton using different methods to calculate the inventory figure. Round your answers to 2 decimal places. 1. End of year 5.82 x 2. Average of the beginning and end of year 5.45 x 3. Average of the ends of quarters (use the five quarter ends) 4.99 x 4. Average of the ends of months (use the 13 month ends) 4.12 x b. Which method provides the most accurate picture of Norton's inventory management? Average of the ends of months C. Which method do you think Norton is currently using? (Hint: See Limitations and weaknesses of Ratio Analysis.) Average of the ends of quarters Why? The input in the box below will not be graded, but may be reviewed and considered by your instructor. Problem 3-14 Norton Industries recorded total cost of goods sold for 20x2 of $6.4 million. Norton had the following inventory balances for the months indicated (end of period balances): In Millions December, 20X1 $1.25 January, 20X2 1.65 February, 20x2 1.70 1.40 March, 20x2 April, 20x2 1.66 May, 20x2 1.93 June, 20X2 1.41 July, 20X2 1.81 August, 20X2 1.78 September, 20X2 1.25 1.61 October, 20X2 November, 20x2 1.63 December, 20x2 1.10 a. Compute inventory turnover for Norton using different methods to calculate the inventory figure. Round your answers to 2 decimal places. 1. End of year 5.82 x 2. Average of the beginning and end of year 5.45 x 3. Average of the ends of quarters (use the five quarter ends) 4.99 x 4. Average of the ends of months (use the 13 month ends) 4.12 x b. Which method provides the most accurate picture of Norton's inventory management? Average of the ends of months C. Which method do you think Norton is currently using? (Hint: See Limitations and weaknesses of Ratio Analysis.) Average of the ends of quarters Why? The input in the box below will not be graded, but may be reviewed and considered by your instructorStep by Step Solution
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