1. Company: Nike

Scenario: Inventory Management in Apparel

Data:

• Beginning Inventory: $500,000
• Ending Inventory: $450,000
• Cost of Goods Sold: $2,000,000

Requirements:

1. Calculate the inventory turnover ratio.
2. Determine the average days in inventory.
3. Discuss the implications of the inventory turnover ratio for cash flow management.
4. Recommend strategies to optimize inventory turnover.
5. Analyze the effect of reducing average days in inventory on working capital.
6. Evaluate the benefits of implementing a just-in-time inventory system.