Calculate the average investment in inventory

Assignment Help Financial Management

Reference no: EM131316880

Calculate the average investment in inventory for each of the following situations. Assume a 365-day year.

a. The firm's annual sales were $18 million, its gross profit margin was 32 percent, and its average age of inventory is 45 days.

b. The firm's annual sales were $325 million, its cost of goods sold are 80 percent of sales, and it turns its inventory 10 times per year.

c. The firm's annual cost of goods sold total $120 million, and it turns its inventory about every 70 days.

Reference no: EM131316880

Questions Cloud

Discuss general approaches to training interventions : TRAINING AND DEVELOPMENT 512 - State and explain the grand strategic choices available to an organization and their importance and identify and discuss general approaches to training interventions which can be implemented in an enterprise.

What is the annual cost savings expected to result : What is the annual cost savings expected to result from installation of the proposed JIT system?- Should the firm install the system?

How the american cancer society might provide education : Imagine that a family friend or colleague has just been diagnosed with cancer. Explain how the American Cancer Society might provide education and support. What ACS services would you recommend and why?

Should the firm implement the proposed change in pay periods : How much additional financing will Sheth and Sons obtain as a result of switching the pay period for managers' salaries from every two weeks to monthly?

Calculate the average investment in inventory : Calculate the average investment in inventory for each of the firm's annual sales were $18 million, its gross profit margin was 32 percent, and its average age of inventory is 45 days.

When it appropriate to use punishment as motivational tactic : Can punishment be used as an effective form of motivation in the workplace? Why or why not? Where and when is it appropriate to use punishment as a motivational tactic?

Identify the first step in the students guide to research : Identify the first step in the student's guide to research.Define the first step of research in your own words. Identify the major assumptions and bias of the drug industry that underlie drug research.Identify the personal bias that you, as a co..

Determine the one-monthahead sales forecast : After checking the presence of possible outliers in the historical database, use the weighted moving average method to determine the one-monthahead sales forecast.

Calculate geps average inventory investment : Use your findings in part (a) to determine the annual savings expected to result from the proposed inventory control system.

User Account

All Pages