Question
Bill Anderson, the Materials Manager of XYZ Firm, is interested in assessing the inventory management performance of the firm. The following (partial) Annual Income Statement
Bill Anderson, the Materials Manager of XYZ Firm, is interested in assessing the inventory management performance of the firm. The following (partial) Annual Income Statement and the four Quarterly Balance Sheet for the fiscal year 202X has been obtained.
XYZ Company, Income Statement, FY 202X
Net sales | $950,000 |
Cost of goods sold | 660,000 |
Operating expenses | 190,000 |
XYZ Company, Quarterly Balance Sheet, FY 202X
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |
---|---|---|---|---|
Cash | $ 46,000 | $ 37,900 | $ 82,000 | $ 54,000 |
Accounts receivable | 55,500 | 46,000 | 123,000 | 72,000 |
Inventory: | ||||
Finished goods | 42,440 | 35,080 | 12,540 | 39,050 |
Work-in-process | 27,780 | 25,770 | 20,120 | 32,990 |
Materials | 32,580 | 79,000 | 52,910 | 22,670 |
Plant assets | 510,000 | 510,000 | 540,000 | 540,000 |
How many weeks of supply does the XYZ Company carry? Round your answer to the nearest second decimal point. (The company operates 52 weeks every year.) :
How many inventory turns did the company went through in FY 202X? Round your answer to the nearest second decimal point. Show all your calculations.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started