what is their average aggregate inventory value, Finance Basics

1. The Marlin Company operates 50 weeks a year, and its cost of goods sold last year was $1,500,000. The firm carries six items in inventory: three raw materials, two work-in-process items, and one finished good. The following table shows the company's last year's average inventory levels for these items, along with their unit values.

Category

Part Number

Average Inventory

Units

Value per Unit

Raw Materials

RM-1

RM-2

RM-3

1750

1500

2000

$15

$25

$20

Work-in-process

WIP-1

WIP-2

1500

1200

$40

$50

Finished Goods

FG-1

1000

$75

a.  What is their average aggregate inventory value?

b.  How many weeks of supply does the firm have?

c.  What was their inventory turnover last year?

d. The turnover ratio is widely used because it is a common measure that links to the financial statements of the firm.  Discuss the benefits and drawbacks of using this measure.

Posted Date: 4/6/2013 5:25:36 AM | Location : United States







Related Discussions:- what is their average aggregate inventory value, Assignment Help, Ask Question on what is their average aggregate inventory value, Get Answer, Expert's Help, what is their average aggregate inventory value Discussions

Write discussion on what is their average aggregate inventory value
Your posts are moderated
Related Questions
Different Risk-profile - Shareholders and Management Shareholders will generally prefer high-risk-high return investments while they are diversified that is they have many inv

Limitations of Middle Asia Stock Exchange Index 1. The twenty (20) company's sample whose share prices are utilized to calculate the index are not true representatives. 2.

Profitability Ratio These ratios signify the performance of the firm in relation to its capability to derive returns or profit from investment or from sale of goods that is pr

Information Signaling Effect Theory Advanced via Stephen Ross in year 1977, He argued such in an inefficient market; management can utilize dividend policy to signal significa


Cost of Finance - Capital Structure This is the price the company pays to retail and acquire finance. To get finance a company will pay implicit costs that are commonly recogn

Weighted Average Cost of Capital Weighted Average Cost of Capital or WACC is also called the overall or composite cost of capital. Since various capital components have diffe

Foreign Trade Balance If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source


Disadvantages of Floatation of New Shares 1. The cost of getting a quotation is high, mainly when a new issue of shares is completed and the company is small. It means that su