what is their average aggregate inventory value, Finance Basics

Assignment Help:

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.


Related Discussions:- what is their average aggregate inventory value

Example of sales method, Example of Sales Method The balance sheet of ...

Example of Sales Method The balance sheet of XYZ Ltd as on date 31st December 2002 is as following:          Net fixed asset Current assets   F

Example of asset based valuation, Example of Asset Based Valuation Ext...

Example of Asset Based Valuation Extracted information from the books of Kent Limited.   Current liabilities Bank overdraft    Sh. 300,000

Determine tax cash flows & irr, An industrial engineer proposed the purchas...

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

PERDIEM CLAIM, how to make a perdiem claim format to maintain the records o...

how to make a perdiem claim format to maintain the records of staff

Calculate the percentage of equity of firm sells, Consider an economy with ...

Consider an economy with three dates {t=0, 1, 2}. A firm has assets in place that generate an output (profit) of either 40 in state L or 160 in state H at t=2. Bothe states equally

A+/a1, A+/A1 It is one of the top ratings that a ratings agency allots ...

A+/A1 It is one of the top ratings that a ratings agency allots to an issuer or insurer. This rating indicates that the security or carrier has steady financial backing and ple

Payback period method - traditional methods, Payback Period Method - Tradit...

Payback Period Method - Traditional Methods This method gauges the viability of a venture via taking the outflows and inflows over time to ascertain how soon a venture can pay

Dividend yield or gordon''s model, Dividend yield or Gordon's Model Th...

Dividend yield or Gordon's Model This model is used to determine the cost of various capital components in particular: Cost of equity - K e Cost of preferenc

Write Your Message!

Captcha
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!

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