Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Happy Valley Homecare Suppliers, Inc. (HVHS), had $13.4 million in sales in 2015 . Its cost of goods sold was $5.4 million, and its average

image text in transcribed Happy Valley Homecare Suppliers, Inc. (HVHS), had $13.4 million in sales in 2015 . Its cost of goods sold was $5.4 million, and its average inventory balance was $2.2 million. a. Calculate the average number of days inventory outstanding ratios for HVHS. b. The average number of inventory days in the industry is 73 days. By how much must HVHS reduce its investment in inventory to improve its inventory days to meet the industry? (Hint: Use a 365-day year.) a. Calculate the number of days inventory outstanding ratios for HVHS. The number of inventory days outstanding is days. (Round to two demical places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Climate Finance Theory And Practice

Authors: Anil Markandya, Ibon Galarraga, Dirk Rübbelke

1st Edition

9814641804, 978-9814641807

More Books

Students also viewed these Finance questions