Company: Beta Logistics Scenario: Inventory Turnover Analysis Data: Beginning Inventory: $250,000 Ending Inventory: $200,000 Cost of Goods
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Question:
- Company: Beta Logistics
Scenario: Inventory Turnover Analysis
Data:
- Beginning Inventory: $250,000
- Ending Inventory: $200,000
- Cost of Goods Sold: $1,500,000
Requirements:
- Calculate the inventory turnover ratio.
- Determine the average days in inventory.
- Discuss the implications of the inventory turnover ratio for cash flow management.
- Recommend strategies to optimize inventory turnover.
- Analyze the effect of reducing average days in inventory on working capital.
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
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