(Efficiency analysis) Baryla Inc. manufactures high quality decorator lamps in a plant located in eastern Tennessee. Last year the firm had sales of $103 million and a gross profit margin of 35 percent. a. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.2 times? b. Currently, some of Baryla's inventory includes$1.9 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory turnover ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.2 (including the unsalable items)? a. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.2times? The amount of inventory that Baryla can hold is $____million. (Round to one decimal place.) b. Currently, some of Baryla's inventory includes $1.9 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory turnover ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.2 (including the unsalable items)? The inventory turnover ratio that the good inventory must have is____ times. (Round to one decimal place.)
(Efficiency analysis) Baryla Inc. manufactures high quality decorator lamps in a plant located in eastern Tennessee. Last year the firm had sales of $103 million and a gross profit margin of 35 percent. a. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.2 times? b. Currently, some of Baryla's inventory includes$1.9 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory turnover ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.2 (including the unsalable items)? a. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.2times? The amount of inventory that Baryla can hold is $____million. (Round to one decimal place.) b. Currently, some of Baryla's inventory includes $1.9 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory turnover ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.2 (including the unsalable items)? The inventory turnover ratio that the good inventory must have is____ times. (Round to one decimal place.)
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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(Efficiency analysis) Baryla Inc. manufactures high quality decorator lamps in a plant located in eastern Tennessee. Last year the firm had sales of
$103 million and a gross profit margin of 35 percent.
a. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.2 times?
b. Currently, some of Baryla's inventory includes$1.9 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory turnover ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.2 (including the unsalable items)?
a. How much inventory can Baryla hold and still maintain an inventory turnover ratio of at least 6.2times?
The amount of inventory that Baryla can hold is
$____million. (Round to one decimal place.)
b. Currently, some of Baryla's inventory includes $1.9 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory turnover ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.2 (including the unsalable items)?
The inventory turnover ratio that the good inventory must have is____
times. (Round to one decimal place.)
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