Question
GHI Retail has provided the following data for the year 2023: Beginning Inventory: $10,000 Purchases: $50,000 Ending Inventory: $15,000 Cost of Goods Sold: $45,000 Requirements:
GHI Retail has provided the following data for the year 2023:
Beginning Inventory: $10,000
Purchases: $50,000
Ending Inventory: $15,000
Cost of Goods Sold: $45,000
Requirements:
Calculate the inventory turnover ratio.
Determine the days inventory outstanding (DIO).
Assess the efficiency of the inventory management.
Evaluate the impact of inventory levels on cash flow.
Provide recommendations for improving inventory management.
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Accounting Volume 1
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood
9th Canadian edition
978-013309863, 9780133128338, 013309863X, 133128334, 978-0132690096
