Purchase Solution

Inventory turnover

Not what you're looking for?

Ask Custom Question

On January 1, 2005 river company's beginning inventory was $400,000. During 2005 the company purchased $1,900,000 of additional inventory, and on December 31, 2005 River's ending inventory was $500,000.

Required:

What is the inventory turnover for 2005?

Purchase this Solution
Solution Summary

Using the data given in problem, inventory turnover is calculated in this solution.

Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Firm's Inventory Level and Inventory Turnover Ratio

    Solution: Inventory turnover ratio Sales Average inventory 1 Assuming that sales are $1000000 and inventory turnover ratio is 2 times: Average inventory = Sales Inventory turnover ratio

  • Working Capital

    Take a 360 day year Number of days in inventory = 360 / inventory turnover= 360/6.67 = 54 days (C) What is the account receivables turnover for 2003?

  • Cash conversion cycle

    (Cash conversion cycle) Auburn Hair Products has an inventory turnover of six times per year, a receivables turnover of 10 times, and a payables turnover of 12 times.

  • Inventory turnover comparison to industry leaders: Widget Inc.

    Inventory Turnover = 21500 / 1250 = 17.2 times b) Inventory / Assets = 1250 / 16600 = 7.53% c) Compared to industry leaders who have inventory turnover of 13 times, Widget Inc. has inventory turnover of 17.2 times.

  • Organic Grocers, Inc: Inventory turnover, performance to ind

    a) Inventory Turnover = COGS/Avg. Inventory. Organic Grocer's Inventory Turnover = 11,110,000/985,800 = 11.27 times per year. b) Organic Grocer's Inventory Turnover is less (worse) than the industry average.

  • Cash freed up

    We calculate the inventory levels at the two turnover rates Inventory Turnover = Sales/Inventory Inventory = Sales/Inventory Turnover At inventory turnover of 2, inventory = 10/2 = $5 million At inventory turnover of 5, inventory = 10/5=$2 million

  • Turnover Ratios

    Inventory turnover 3. Fixed asset turnover 4.

  • Inventory turnover rate

    Inventory turnover rate is how fast the inventory is being sold.

  • Freeing Up Cash by Increasing Inventory Turnover Ratio

    Inventory turnover = Sales/Inventory Inventory = Sales/Inventory Turnover With an inventory turnover of 2, the amount of inventory held was 10/2=$5 million With an inventory turnover of 5, the amount of inventory held will be 10/5 = $2 million The

  • Inventory turnover and Total Sales

    602909 Inventory turnover and Total Sales Baker Mfg. Inc. (see Table 11.9) wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.

View More Related Solutions