a. Compute the inventory tumover for each year using the formula Sales/Inventory. (Round your answers to 2 decimal places.) 20x1 20X2 Inventory Turnover Ratio times times b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year. (Round your answers to 2 decimal places.)
a. Compute the inventory tumover for each year using the formula Sales/Inventory. (Round your answers to 2 decimal places.) 20x1 20X2 Inventory Turnover Ratio times times b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year. (Round your answers to 2 decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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Complete parts a and b please and thank you
Transcribed Image Text:Perez Corporation has the following financial data for the years 20X1 and 20X2:
Sales
Cost of goods sold
Inventory
a. Compute the inventory tumover for each year using the formula Sales/Inventory. (Round your answers to 2 decimal places.)
20X1
20X1
20X2
20X1
20X2
$ 6,300,000 $ 7,910,000
4,950,000
450,000
6,497,500
565,000
Inventory Turnover
Ratio
times
times
b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods
sold/Inventory, for each year. (Round your answers to 2 decimal places.)
Inventory Turnover
Ratio
times
times
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