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Analysis of Inventories the financial statements of General Mills Inc.'s 2007 annual report discloses the following information. Compute General Mills's (a) Inventory turnover and (b) The average days to sell inventory for 2007 and 2006. May 30, 2007 (in millions) May 25, 2006 May 26, 2005 $1,037 $1,055 Fiscal Year 2007 $12,442 Inventories $1,174 2006 Sales Cost of goods sold

Analysis of Inventories the financial statements of General Mills Inc.'s 2007 annual report discloses the following information. Compute General Mills's

(a) Inventory turnover and

(b) The average days to sell inventory for 2007 and 2006.

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Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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May 30, 2007 (in millions) May 25, 2006 May 26, 2005 $1,037 $1,055 Fiscal Year 2007 $12,442 Inventories $1,174 2006 Sales Cost of goods sold Net income $11.712 7,545 1,090 7,955 1,144

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Related Book For answer-question
Intermediate Accounting

Intermediate Accounting

13th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

ISBN: 978-0470423684

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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.

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