FREE Trial

Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2013 and $1,200,000 in

Question:

Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2013 and $1,200,000 in 2014.
a. Calculate the inventory turnover for each year. Comment on your findings.
b. What would have been the amount of inventories in 2014 if the 2013 turnover ratio had been maintained?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 61% (13 reviews)

a Inventory turnover COGSInventory 1200000500000 24...View the full answer


answer-question-section
Answered By
tutor-profile-image
Lisper Wanja
I am an experienced and highly motivated writer with a passion for the skills listed. I have a proven track record of my expertise and my aim is to deliver quality, well-detailed and plagiarism free projects. My genuine passion for writing combined with my ongoing professional development through school and research makes me an ideal candidate within for any assignment.
4.90+ 233+ Reviews 388+ Question Solved
Related Book For  book-img-for-question
Introduction to Finance Markets Investments and Financial Management

Introduction to Finance Markets Investments and Financial Management

ISBN: 978-1118492673

15th edition

Authors: Melicher Ronald, Norton Edgar

See More Books
Question Posted:
See More Questions

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 Finance questions

Finance Buffet Activity Edition - ISBN: B0CYBNDQQ5 - Free Book