Question

Zawale Ltd. is a wholesaler of fresh fruits and vegetables. Zawale purchases fruits and vegetables from growers and supplies them to small grocery stores. You have been provided with the following information from Zawale's accounting records (Zawale's year-end is December 31):



Required:
a. Calculate Zawale’s inventory turnover ratio and average number of days inventory on hand for 2015, 2016, and 2017.
b. Evaluate how well Zawale’s management is managing the inventory. Explain.
c. What are some possible explanations for the results you found in (a) and (b)?
d. What are the implications for Zawale’s performance of the results you found in (a)?Explain.


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  • CreatedFebruary 26, 2015
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