This information is available for the Automotive and Electronics Divisions of Prestige Motors Ltd for 2015. Prestige
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This information is available for the Automotive and Electronics Divisions of Prestige Motors Ltd for 2015. Prestige Motors uses the FIFO inventory method.
Required
(a) Calculate inventory turnover, days in inventory, and current ratio for Prestige Motors Ltd for 2015.
(b) If a company has a low inventory turnover or high days in inventory, is it considered to be a good or bad sign for the entity’s shareholders? Explain your answer.
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Related Book For
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
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