Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. (ratio analysis) assuming a 360-day year, calculat

(Ratio analysis) Assuming a 360-day year, calculate what the average investment in inventory would be...

90.2K

Verified Solution

Question

Finance

image

(Ratio analysis) Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case. a. The firm has sales of $600,000, a gross profit margin of 11 percent, and an inventory turnover ratio of 5 . b. The firm has a cost-of-goods-sold figure of $500,000 and an average age of inventory of 40 days. c. The firm has a cost-of-goods-sold figure of $1.1 million and an inventory turnover rate of 7 . d. The firm has a sales figure of $26 million, a gross profit margin of 17 percent, and an average age of inventory of 45 days

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