Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 15.16 financial statement analysis the inv

PROBLEM 15.16 Financial statement analysis The inventory turnover of A Ltd was 3.79 in 2018...

80.2K

Verified Solution

Question

Accounting

PROBLEM 15.16 Financial statement analysis The inventory turnover of A Ltd was 3.79 in 2018 and the days inventory on hand 2019 was 140.6.

1 Explain the purpose of calculating the inventory turnover ratio.

1a Explain what an inventory turnover ratio of 3.79 means.

1b Is the 2019 inventory turnover ratio for A Ltd an improvement on the 2018 inventory turnover ratio?

1c What factors should management consider when interpreting these figures?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Economics
1.2K views

Provide a social media marketing scenario where you would incorporate video content as a promotional tool....

Chemistry
1.2K views

A chemistry student five possible Lewis structures for the cyanate ion. Give a reason why structures (4)...

Psychology
1.2K views

Question from Dancing with Skeletons: Does the author suggest that difficult or tragic experiences can have any...

General Management
1.2K views

1-How does strategic planning differ from an annual planning? 2-What do we mean by ‘defining or redefining...

Physics
1.2K views

Adjacent graph is drawn for particle along straight line motion a Acceleration v velocity Find...

Basic Math
1.2K views

Factor out the GCF from the polynomial 2 48xy 147x

Algebra
1.2K views

Tu upus untry 1 Which figure shows ray AB O O A Line A Line...

Accounting
1.2K views

Provide a Ghanaian example each for the following grand strategies. i. Divestiture ii. Market...

Accounting
1.2K views

Required a. Compute the change in cash that occurred in 201 9. b. Prepare a...

Accounting
1.2K views

In comparing accounting net income and operating cash flow, what two items do you find...

Accounting
1.2K views

Cash Accounts receivable Inventory December 31 2017 2016 $33,700 $13,100 12,200 9,900 12,000 8,900 -0...

Accounting
1.2K views

1. Explain the success factors for implementing global information systems 2. Recognize how...