Perez Corporation has the following financial data for the years 20X1 and 20X2: ...................................................20X1................20X2 Sales......................................$8,000,000.........$10,000,000 Cost of
Question:
Perez Corporation has the following financial data for the years 20X1 and 20X2:
...................................................20X1................20X2
Sales......................................$8,000,000.........$10,000,000
Cost of goods sold.......................6,000,000............9,000,000
Inventory....................................800,000............1,000,000
a. Compute inventory turnover based on ratio number 6, Sales/Inventory, for each year.
b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year.
c. What conclusions can you draw from part a and part b?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Foundations of Financial Management
ISBN: 978-1259277160
16th edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen