The financial statements of The Hershey Company appear in Appendix B, following the financial statements for Tootsie

Question:

The financial statements of The Hershey Company appear in Appendix B, following the financial statements for Tootsie Roll in Appendix A.

Instructions

(a) Based on the information in the financial statements, compute these 2009 values for each company. (Do not adjust for the LIFO reserve.)

(1) Inventory turnover ratio. (Use product cost of goods sold and total inventory.)

(2) Days in inventory.

(b) What conclusions concerning the management of the inventory can you draw from these data?

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...