In Problem 21, if inventory turnover had only been 4 times: a. What would be the new
Question:
In Problem 21, if inventory turnover had only been 4 times:
a. What would be the new value for inventory investment?
b. What would be the return on investment? You need to recompute the total investment and the total costs of the campaign to work toward computing income after taxes. Should the campaign be undertaken?
Step by Step Answer:
Global Services cont Solution Turnovers a Acc Receivable Sales AR Turnove...View the full answer
Foundations of Financial Management
ISBN: 978-0077454432
14th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
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
-
Jim Reed, II had just left a rather unpleasant meeting with his banker, Harold Holmes of First Virginia National Bank. Jim had banked with First Virginia for almost 30 years and his father, who had...
-
AutoSound, Inc. manufactures radios, tape players, and compact disk players for automobiles Comparative balance sheets and income statements for 20x0 and 20x1 are presented here. AutoSound, Inc....
-
The Christie Corporation is trying to determine the effect of its inventory turnover ratio and days sales outstanding (DSO) on its cash flow cycle. Christies sales last year (all on credit) were...
-
What type of isomers are exhibited by [Fe(en) 3 ]Cl 2 (en = ethane-1,2-diamine)? no isomers are possible. cis and trans isomers fac and mer isomers optical isomers
-
Use this information to prepare a net worth analysis of Slicks girlfriend. Steve (Slick) Willy, 45, just got out of jail. As a reformed citizen on parole, Slick decides to go into business for...
-
Alex can choose from five investment opportunities. Their respective costs and expected returns are summarized below: Expected Return Cost Opportunity 1 $16,000 $5,000 Opportunity 2 $22,000 $7,000...
-
Predicting Delayed Flights. The file FlightDelays . jmp contains information on all commercial flights departing the Washington, DC area and arriving at New York during January 2004. For each flight...
-
Performance Tires plans to engage in direct mail advertising. It is currently in negotiations to purchase a mailing list of the names of people who bought sports cars within the last three years. The...
-
What is Debra's net worth if her assets total $40000, her gross income is $165000, her student loan debt is $70000 (she has no other debts), and her annual expenses (including taxes) total $88000?
-
Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,400, and the company expects to sell 1,500 per year. The company currently...
-
Reconsider Problem 19 c. Assume the average collection period is 120 days. All other factors are the same (including 12 percent uncollectibles). Should credit be extended?
-
Sanders' Prime Time Company has annual credit sales of $1,800,000 and accounts receivable of $210,000. Compute the value of the average collection period.
-
Describe at least three ways in which a systematic error might occur while using a pipet to transfer a known volume of liquid.
-
What are some generalized cross-cultural assumptions about motivation? Consider Hofstedes dimensions.
-
International managers know that a countrys laws are a reflection of its culture, religion, and traditions. Briefly explain common law, civil law, and Islamic law.
-
Leadership in the digital world is different in many ways. What are some of the demands that a digital platform places on leaders in leading their employees?
-
Why does technological communication require more cultural sensitivity than face-to-face communication? What are some examples where the communication process may be affected?
-
Why is the persuasion negotiation stagewhere the hard bargaining startschallenging for international managers?
-
Locate the Treasury issue in Figure 7.5 maturing in February 2029. What is its coupon rate? What is its bid price? What was the previous days asked price? Assume a par value of $10,000. Treasury...
-
The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan. Before they make their first payment, ABC transfers the right to receive mortgage payments to...
-
What issue does agency theory examine? Why is it important in a public corporation rather than in a private corporation?
-
Why are institutional investors important in today's business world?
-
Why is profit maximization, by itself, an inappropriate goal? What is meant by the goal of maximization of shareholder wealth?
-
Using a CAD package, draw the necessary views and completely dimension the part shown. Do not base your 2-D dimension placement on the 3-D dimensions shown. Use proper dimensioning techniques to...
-
Using a CAD package, draw the necessary views and completely dimension the part shown. Do not base your 2-D dimension placement on the 3-D dimensions shown. Use proper dimensioning techniques to...
-
2. (20 points) The gravitational force between two objects is F = 100N, determine the following: (a) The force between the objects is the distance is twice the original distance. (b) The force...
Study smarter with the SolutionInn App