t 1. Calculate the company's inventory carrying cost (ICC; % and $). ICC % ICC $ 2. Calculate how many inventory turns occurred in 2022. Inventory turns: 5 3. How many selling days of product are available for 2023? Selling days of 6 Product: 7
t 1. Calculate the company's inventory carrying cost (ICC; % and $). ICC % ICC $ 2. Calculate how many inventory turns occurred in 2022. Inventory turns: 5 3. How many selling days of product are available for 2023? Selling days of 6 Product: 7
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1
Transcribed Image Text:1 Inventory KPI Practice Problems
2
A pet treat manufacturer had sales of $4,159,000 in 2022. On December 31st, they had an on-hand inventory valued at $700,500. The company
calculates their inventory carrying cost based on the following:
Cost of capital to
finance
inventory:
3%
3
Opportunity cost
8%
4
of capital:
Inventory taxes:
3%
5
Obsolescence
5%
6
factor:
644
7
8 1.
Calculate the company's inventory carrying cost (ICC; % and $).
9 ICC %
10 ICC $
11
12
12 2.
13
14
Calculate how many inventory turns occurred in 2022.
Inventory
turns:
15 3. How many selling days of product are available for 2023?
Selling days of
16
Product:
17
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