Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover
Question:
Baker Mfg Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.
a. What is Bakers inventory turnover?
b. How does Bakers performance compare to the industry leaders?
Arrow Distributing Corp. Net revenue Cost of sales Inventory Total assets $16,500 $13.500 1,000 8,600 Baker Mfg. Ine. Net revenue Cost of sales Inventory Total assets $27.500 $21,500 1,250 $16,600
Step by Step Answer:
a Computation of the Bakers Inventory Turnover Given information ...View the full answer
Operations Management Sustainability and Supply Chain Management
ISBN: 978-0134130422
12th edition
Authors: Jay Heizer, Barry Render, Chuck Munson
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Finance questions
-
Baker Mfg. Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory. a) What is Baker's...
-
3. Amanda Bakery wants to compare its inventory turnover with its industry leader, which has turnover 13 times per year and 18% of its assets are divested in inventory. a. Determine inventory...
-
Show that 15 is an inverse of 7 modulo 26.
-
A political action organization has on its website a series of short questionnaires that ask about your political position on an important topic. It also includes a "Support Reply Form," a...
-
Mark Goodwin, a computer programmer, had a grudge against his company. To get even, he coded a special routine in the mortgage loan program that erased a small, random number of accounts on the disk...
-
During the inspection of a rejected integrated circuit (IC), it was observed that the rejected IC could have an incorrect circuit, it could be bent, or it could have both defects. The probability of...
-
A phlebotomist draws the blood of a random sample of 50 patients and determines their blood types as shown: (a) Construct a frequency distribution. (b) Construct a relative frequency distribution....
-
A lake with a fixed carrying capacity contains a certain fish population. The fish population in the lake has a growth rate that is proportional to its size when the population is very small relative...
-
In the ledger you would use J1, J2, J3 etc. for the post reference number showing which journal and page number you got the information. Then you go back to the journal and fill in the account number...
-
The Shallow Pan Company has 85 obsolete pans in inventory at a cost of $5,000. The obsolete pans cant be sold in their current condition. The pans can be upgraded to tri-ply for $2,000. The tri-ply...
-
Staal Enterprises is considering a change from its current capital structure. Staal currently has an all-equity capital structure and is considering a capital structure with 35% debt. There are...
-
In Problems 3770, solve each inequality. Express your answer using set notation or interval notation. Graph the solution set. |5-2x|> 7
-
Define human resource audit. State its advantages and limitations. How does it differ from human resource accounting?
-
What are the contents and format of an audit report?
-
Can dividend be paid out of profit arising out of forfeited and re-issue of shares?
-
State with reasons whether you, as an auditor, would approve the payment of dividend out of capital.
-
How the auditors prepare themselves before undertaking audit of an insurance company?
-
a. Smart kitchens are now offered in new homes, for example, some homes come with ovens that can cook food on demand via a cell phone. b. Smart kitchens are now offered in new homes; for example,...
-
Time Travel Publishing was recently organized. The company issued common stock to an attorney who provided legal services worth $25,000 to help organize the corporation. Time Travel also issued...
-
Which of the following is not a message digest algorithm? (a) DES (b) MD5 (c) SHA-1 (d) SHA-256
-
Canon, a Japanese manufacturer of photographic equipment, decided against offshoring and kept its manufacturing and new product development processes in Japan, which has relatively high labor costs,...
-
Canon, a Japanese manufacturer of photographic equipment, decided against offshoring and kept its manufacturing and new product development processes in Japan, which has relatively high labor costs,...
-
Apart is produced in lots of l, 000 units. It is assembled from 2 components worth $50 total. The value added in production (for labor and variable overhead) is $60 per unit, bringing total costs per...
-
How do you prioritize features and attributes when designing a new product or service? What steps should be taken to ensure that the design process aligns with the organization's overall strategy and...
-
Information that does not have an adjustment reason code to route payments into the correct bank accounts to relay about patient benefit coverage to indicate the amount being paid and the date of...
-
Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses Purchases of raw materials Direct labor...
Study smarter with the SolutionInn App