The owner of a large machine ship has just finishedits financial analysis from the prior fiscal year. Thefollowing is an excerps from the final report.Net revenueCost of goods soldValue of production materials on hand $41,500Value of work-in-process inventory$31,000Value of finished goods on handa. Compute the inventory turnover ratio (ITR).b. Compute the weeks of supply (WS).$22,500$500,000$328,250

Inventory Turnover Ratio (ITR) = Cost of Goods sold/Total Inventory Total Inventory = Value of…

Answered: a. Compute the inventory turnover ratio…

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

Problem 1PS

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Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select one: True False
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a. Compute the inventory turnover ratio (ITR). b. Compute the weeks of supply (WS).