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$335,000Cost of goods sold 298,000Value of production materials on-hand 42,500Value of work-in-process inventory 53,000Value of finished goods on-hand 20,500 a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.)b. Compute the weeks of supply (WS). (Do not round intermediate calculations. Round your answer to 1 decimal place.)

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$	335,000
Cost of goods sold		298,000
Value of production materials on-hand		42,500
Value of work-in-process inventory		53,000
Value of finished goods on-hand		20,500

a. Compute the inventory turnover ratio (ITR). (Round your answer to 1 decimal place.)

b. Compute the weeks of supply (WS). (Do not round intermediate calculations. Round your answer to 1 decimal place.)

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