1. Company: Nu Retail

Scenario: Inventory Turnover Analysis

Data:

• Beginning Inventory: $300,000
• Ending Inventory: $250,000
• Cost of Goods Sold: $1,800,000

Requirements:

1. Calculate the inventory turnover ratio.
2. Determine the average days in inventory.
3. Discuss the importance of inventory management in retail.
4. Recommend strategies to improve inventory turnover.
5. Analyze the impact of improved inventory turnover on cash flow.