Let us suppose that the abc company total annual sales solution this question Let us suppose that the 'ABC' company's total annualsales are 3,600 units, the average inventory level is300 units, and the annual working days are 300 days.The inventory days of supply (DOS) are:a. Somewhere between 30 and 31 days.b. 25 days.c. 12 days.d. None of the above.

Step 1: Define Inventory ManagementInventory management is the process through which inventory is…

Answered: Let us suppose that the 'ABC' company's…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 30MCQ

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Based on the following information, how many days of supply of inventory is the firm holding (assume 220 days of operation per year)? Do not round intermediate calculations. Round your answer to one decimal place. Sales $8,000,000 Cost of goods sold $6,050,000 Gross profit $1,950,000 Overhead costs $500,000 Net profit $1,450,000 Total inventory $2,900,000 Fixed assets $3,300,000 Long-term debt $2,900,000 Inventory days' supply: days' supply Interpret your answer if the industry average inventory days' supply is 35 days. Round your answer to one decimal place. If the industry average days' supply is 35 days and this firm's IDS is times more, they inventory management problems.
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Title 1. You are inventory manager of Diego Supplies Inc. You computed the EOQ to be 500 units. Annual... Description </o:p> 1. You are inventory manager of Diego Supplies Inc. You computed the EOQ to be 500 units. Annual demand for the company is 5,000 units, and holding cost is $4 per unit. What is the ordering cost? 2. G-Tech’s monthly demand is 250 units. You are in charge of the inventory department. You know that the holding cost is $60 per unit and ordering cost is $100 per order. What is the EOQ? What is the number of orders per year? What is the annual holding cost? If lead time L is one week and demand rate is 60 units per week, what is the ROP?

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Let us suppose that the 'ABC' company's total annual sales are 3,600 units, the average inventory level is 300 units, and the annual working days are 300 days. The inventory days of supply (DOS) are: a. Somewhere between 30 and 31 days. b. 25 days. c. 12 days. d. None of the above.