Question
Its Good, YAll! is a Texas-based company that operates a large chain of restaurants. The following information is available for the company (in thousands): Category
Its Good, YAll! is a Texas-based company that operates a large chain of restaurants. The following information is available for the company (in thousands):
| Category | 2007 | 2008 | 2009 |
|---|---|---|---|
| Net Sales | $400,577 | $517,616 | $640,898 |
| Cost of Goods Sold | $130,885 | $171,708 | $215,071 |
| Net Income | $33,943 | $46,652 | $57,497 |
| Ending Inventory | $23,192 | $28,426 | $41,989 |
Compute the companys inventory turnover ratio and age of inventory for 2007 through 2009. Beginning inventory for 2007 was $15,746,000.
Comment on the ratios computed in Part A. Are there any definite trends in theses ratios? If so, are these trends favorable or unfavorable? Explain.
Why do decision makers pay close attention to the age of an inventory statistic for companies in the restaurant industry?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Business Finance 101 Monopolies Accounting Audits And Blockchain
Authors: Louis Bevoc
1st Edition
1791808182, 978-1791808181
