User Account

All Pages

How would you evaluate the activity of wilkins'' inventory

Assignment Help Finance Basics
Reference no: EM131110782

Wilkins Manufacturing has annual sales of $4 million and a gross profit margin of 40%. Its end-of-quarter inventories are Quarter Inventory

1 ........ $ 400,000

2 ........ 800,000

3 ........ 1,200,000

4 ........ 200,000

a. Find the average quarterly inventory and use it to calculate the firm's inventory turnover and the average age of inventory.

b. Assuming that the company is in an industry with an average inventory turnover of 2.0, how would you evaluate the activity of Wilkins' inventory?

Reference no: EM131110782

Questions Cloud

What recommendations relative to the amount : What recommendations relative to the amount and the handling of inventory could you make to the new owners? What recommendations relative to the amount and the handling of accounts receivable could you make to the new owners? What recommendations rel..
The company classifies the investments as available for sale : Ochoa Inc. sold part of its investment portfolio for $12,875. This transaction resulted in a gain of $2,000 for the company. The company classifies the investments as available-for-sale.
The balance sheet data of wyeth company at the end of 2010 : The balance sheet data of Wyeth Company at the end of 2010 and 2009 follow. Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash.
Would this affect the validity of your conclusion : Use the year-end total to evaluate the firm’s collection system. If 70% of the firm’s sales occur between July and December, would this affect the validity of your conclusion in part a? Explain.
How would you evaluate the activity of wilkins'' inventory : Find the average quarterly inventory and use it to calculate the firm's inventory turnover and the average age of inventory. Assuming that the company is in an industry with an average inventory turnover of 2.0, how would you evaluate the activity of..
Calculate josh''s liquidity ratio : Calculate Josh's liquidity ratio. Several of Josh's friends have told him that they have liquidity ratios of about 1.8. How would you analyze Josh's liquidity relative to his friends?
Net income as reported on the income statement : Plant assets that cost $60,000 and were 80% depreciated were sold during 2010 for $8,000. The loss (not extraordinary) was incorrectly charged directly to Retained Earnings.
What problems might robert encounter in comparing : What problems might Robert encounter in comparing these companies to one another on the basis of their ratios? Why might the current and quick ratios for the electric utility and the fast-food stock be so much lower than the same ratios for the other..
What was mountain air''s net income for fiscal : What was Mountain Air's net income for fiscal 2012? How many new shares did the corporation issue and sell during the year? At what average price per share did the new stock sold during 2012 sell? At what price per share did Mountain Air's original 5..

Reviews

Write a Review

Finance Basics Questions & Answers

  Briefly explain what inflation targeting

Briefly explain what inflation targeting is and list the five (5) main elements related to it. Then discuss the four (4) advantages and three (3) disadvantages of this type of monetary policy strategy.

  What was the dollar amount of retained earnings

If the firm follows a residual dividend policy and has no other projects, what is its expected dividend payout ratio?

  Computing risk-free rate and the expected return using capm

Computing risk-free rate and the expected return using CAPM and Define a linear regression model consisdent with CAPM in the following way

  An indirect price discrimination scheme

Which of the following statements is consistent with an indirect price discrimination scheme?a. The seller doesn't have market power.

  Values of bonds for given interest rates

What would be the value of this bond if interest rates fall to 5% the day after it is purchased? If interest rates fell to 5% after one year, what would the bond be worth at that point?

  If an investment has a cumulative 6345 rate of return over

if an investment has a cumulative 63.45 rate of return over 3.78 years what is the annual continuously compounded rate

  Which of the following statements about finance accounting

Which of the following statements about finance, accounting, and financial management is most correct? a. Accounting is of no value in decision making. b. Accounting provides the theory and concepts necessary to help managers make better decisions. c..

  How should orchid prioritize these projects

Suppose in addition that Orchid currently has only 12 research scientists and does not anticipate being able to hire any more in the near future. How should Orchid prioritize these projects?

  A firm currently has no debt the firm has 10 million

a firm currently has no debt. the firm has 10 million shares outstanding and those shares currently have a market

  Computing the average return and standard deviation

Computing the average return and standard deviation and you are considering a new product launch

  Find the stock expected price today

Suppose that the expected future dividends (D) at end of periods 1,2, and 3, as well as the expected future price (P) at end of period 3 for a stock are as given: D1 = $1.20, D2 = $1.40, D3 = $1.55, and P3 = $80.00.

  Share j has a beta of 135 and an expected return of 17

share j has a beta of 1.35 and an expected return of 17 while share k has a beta of 0.8 and an expected return of 10.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd