If a firms cost of goods sold is $5 million and its inventory turnover is 10 times,
Question:
If a firm’s cost of goods sold is $5 million and its inventory turnover is 10 times, what is the average inventory?
Step by Step Answer:
Average ...View the full answer
Principles of Supply Chain Management A Balanced Approach
ISBN: 978-1337406499
5th edition
Authors: Joel D. Wisner, Keah Choon Tan, G. Keong Leong
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
Sora Industries has 60 million outstanding shares, $120 million in debt, $40 million in cash, and the following projected free cash flow for the next four years (see MyFinanceLab for the data in...
-
The 2016 income statement and other information for Mallard Corporation, which is about to purchase a new machine at a cost of $500 and a new computer system at a cost of $300, follows....
-
California Retailing Inc. has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000. What is California Retailing's EBIT? A) $850,000 B)...
-
Jake Drewrey has total fixed monthly expenses of $ 1,340 and his gross monthly income is $3,875. What is his debt-to-income ratio? How does his ratio compare to the desired ratio?
-
What do we mean by monopolistic competition? Why do we use this model to examine intraindustry trade?
-
Shania would like to invest in a company that will give her a good rate of return on her investment. She has collected information on four companies. Extracts from their most recent financial...
-
How is corporate strategy related to the other organizational strategies? LO1
-
Based on what you know about the various documentation techniques, what technique(s) would you propose to the members of the group? How will the technique(s) you proposed overcome some of the...
-
At December 31, 2016, Pina Colada Inc. had a deferred tax asset of $40,200. At December 31, 2017, the deferred tax asset is $63,500. The corporations 2017 current tax expense is $69,300. A) What...
-
The Energy Information Administration reported that the mean retail price per gallon of regular grade gasoline was $3.43 (Energy Information Administration, July 2012). Suppose that the standard...
-
If a firms cost of goods sold is $2.5 million and its average inventory is $500,000, what is the inventory turnover?
-
If a firms inventory turnover is 8 times and its average inventory is $160,000, what is the cost of goods sold?
-
Assume the same facts as in E 3, except that interest is included in the face amount of the note and the note is discounted at the bank on October 3 1 . Prepare the following entries in journal form:...
-
Exercise 11-5 Profit allocation in a partnership LO3Dallas and Weiss formed a partnership to manage rental properties, by investing $161,000 and $189,000, respectively. During its first year, the...
-
operation research an introduction by Taha, Hamdy A . 2 0 2 2 . Operations Research - An Introduction. 1 1 th ed . Prentice Hall..kindly explain this
-
which 2 statements are correct regarding budgets in quickbooks online? a . budgets can be created to track capital expenditures. b . budgets can be set up bsed on the last fiscal year's financial...
-
Dr. Yong has requested that Senture Houston, an office manager at Pain Free Dental Associates, prepare a single journal entry for December 31, 2022. The bank statement for that day shows $9,500....
-
This program will not require any IF statements, loops, or custom classes. Instead, it will check inputted data for two kinds of mistakes: Wrong data type (entering text instead of numbers), and math...
-
Find the x-values (if any) at which f is not continuous. Which of the discontinuities are removable? f(x) = 6/x
-
Can partitioned join be used for r r.A s? Explain your answer
-
Why do you think the Baldrige Award is available only to U.S. companies?
-
What is the DMAIC improvement cycle, and how could you use it to improve your college study habits?
-
Why was Toyota's first U.S. car such a failure? What did they learn from this experience?
-
A stock is expected to pay a dividend of $1.50 at the end of the year (i.e., D 1 = $1.50), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the...
-
The Hobby Shop has a checking account with a ledger balance of $1,700. The firm has $2,400 in uncollected deposits and $4,200 in outstanding checks. What is the amount of the disbursement float on...
-
An investment will pay you $34,000 in 11 years. If the appropriate discount rate is 6.1 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate...
Study smarter with the SolutionInn App