Analyzing inventories over three years The following information relates to the activities of Mattel, a manufacturer of

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Analyzing inventories over three years The following information relates to the activities of Mattel, a manufacturer of toys (amounts in millions):

a. Compute the inventory turnover for each year.

b. Compute the average number of days that inventories are held each year.

c. Compute the ct of goods sold to sales percentage for each year

d. How well has Mattel managed its inventories over the threeyears?

2007 2006 2005 $5,970 3,193 406 Sales Cost of Goods Sold $5,650 3,038 $5,179 2,806 Average Inventory 380 415

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Financial Accounting an introduction to concepts, methods and uses

ISBN: 978-0324789003

13th Edition

Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis

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Question Posted: Dec 03, 2011 03:27 AM

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Analyzing inventories over three years The following information relates to the activities of Mattel, a manufacturer of

Question:

2007 2006 2005 $5,970 3,193 406 Sales Cost of Goods Sold $5,650 3,038 $5,179 2,806 Average Inventory 380 415

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Mattel analyzing inventories over three years Amounts in Millions a Inventory Year Numerator Denomin...View the full answer

Financial Accounting an introduction to concepts, methods and uses

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