Inventory Turnover
Not what you're looking for?
XYZ corporation reports the following data on their IS and BS:
Sales: 1,000,000.00
CoGS: 500,000.00
Gross Margin: 500,000.00
SG&A: 250,000
EBIT: 250,000
Interest: 150,000
EBT: 100,000
Taxes: 30,000
Net Income: 70,000
Balance Sheet (Simplified)
Assets
Inventory: 1,000,000
Other Current Assets: 2,000,000
Long Term Assets: 5,000,000
Total Assets: 8,000,000
Liabilities
Current Liabilities: 2,000,000
Long Term Debt: 3,000,000
Equity
Paid-In Capital: 1,000,000
Retained Earnings: 2,000,000
Total Liabilities and Equity: 8,000,000
In addition, the accounting department reports last years inventory balance was 3,000,000
Now the questions:
What are the inventory turns for the firm?
If the average turns in this same industry is 4x, is XYZ better or worse then average?
What must be done to improve inventory turns?
Purchase this Solution
Solution Summary
Response discusses the steps to compute the Inventory Turnover
Solution Preview
Now the questions:
What are the inventory turns for the firm?
If the average turns in this same industry is 4x, is XYZ better or worse then average?
What must be done to improve inventory turns?
Inventory Turnover = ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Learning Lean
This quiz will help you understand the basic concepts of Lean.