Question
Happy Valley HomecareSuppliers, Incorporated(HVHS), had $17.6 million in sales in 2010. Its cost of goods sold was $7.04 million, and its average inventory balance was
Happy Valley HomecareSuppliers, Incorporated(HVHS), had $17.6 million in sales in 2010. Its cost of goods sold was $7.04 million, and its average inventory balance was $1.63 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 theindustry?
(Hint: Use a365-day year.)
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Matlab An Introduction with Applications
Authors: Amos Gilat
5th edition
1118629868, 978-1118801802, 1118801806, 978-1118629864
