Calculate the average investment in inventory for each of the following situations. Assume a 365-day year. a.
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Calculate the average investment in inventory for each of the following situations. Assume a 365-day year.
a. The firm’s annual sales were $18 million, its gross profit margin was 32%, and its average age of inventory is 45 days.
b. The firm’s annual sales were $325 million its cost of goods sold are 80% of sales, and it turns its inventory 10 times per year.
c. The firm’s annual cost of goods sold total $120 million, and it turns its inventory about every 70 days.
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Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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