1. Company: NOP Retail

Scenario: Inventory Management

Data:

• Beginning Inventory: $50,000
• Purchases: $200,000
• Ending Inventory: $30,000
• Cost of Goods Sold: $220,000

Requirements:

1. Calculate the inventory turnover ratio.
2. Determine the days in inventory.
3. Discuss the importance of inventory management in cost control.
4. Recommend strategies to improve inventory turnover.