Jenna Baker, CEO of Baker Mfg. Inc., wishes to compare her company’s inventory turnover (see Table 11.9) to that of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.

a) What is Baker’s inventory turnover?
b) What is Baker’s percentage of assets committed to inventory?
c) How does Baker’s performance compare to the industry leaders?

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TABLE 11.9 ARROW DISTRIBUTING CORP. Net revenue Cost of sales Average inventory Total assets BAKER MFG. INC. Net revenue Cost of sales Average inventory Total assets $16,500 $13,500 $ 1,000 $ 8,600 $27,500 $21,500 $1,250 $16,600