The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue Cost of goods sold Value of production materials on hand i Value of work-in-process inventory Value of finished goods on hand $365,000 316,000 42,500 41,000 14,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) Inventory turnover ratio 11.2 per year b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)
The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the final report: Net revenue Cost of goods sold Value of production materials on hand i Value of work-in-process inventory Value of finished goods on hand $365,000 316,000 42,500 41,000 14,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.) Inventory turnover ratio 11.2 per year b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 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
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
Transcribed Image Text:The owner of a large machine shop has just finished its financial analysis from the prior fiscal year. Following is an excerpt from the
final report:
Net revenue
Cost of goods sold
Value of production materials on hand i
Value of work-in-process inventory
Value of finished goods on hand
Inventory turnover ratio
$365,000
316,000
42,500
a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.)
Weeks of supply
41,000
14,500
11.2 per year
b. Compute the weeks of supply (WS). (Do not round intermediate calculations: Round your answer to 1 decimal place.)
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