Anvil Metal Works (AMW) had a quick ratio of 1.1, a current ratio of 2.5, an inventory
Question:
Step by Step Answer:
1 2 3 4 5 Current assets Current liabilities Current liabilities 324000 Current assets Inventor...View the full answer
Financial Management Theory and Practice
ISBN: 978-0176517304
2nd Canadian edition
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
Related Video
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.
Students also viewed these Finance questions
-
The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 6 times, total current assets of $810,000, and cash and marketable securities of $120,000. What were...
-
The Kretovich Company had a quick ratio of 1.4, a current ratio of 3.0, an inventory turnover of 6 times, total current assets of $810,000, and cash and marketable securities of $120,000. What were...
-
In July 2007, Apple had cash of $7.12 billion, current assets of $18.75 billion, and current liabilities of $6.99 billion. It also had inventories of $0.25 billion. a. What was Apples current ratio?...
-
The adjusted trial balance for Ray Corporation at July 31, 2017, the corporation's fiscal year end, contained the following: Of the lease liability amount, $16,250 is due within the next year. Total...
-
Ajax Manufacturing Company was unionized in 1998 and was operating under a contract negotiated at the beginning of that year. Several new workers were hired near the end of the year, and they thought...
-
The Accounting Equation For each of the following cases, fill in the blank with the appropriate dollar amount. Case 1 Case 2 Case 3 Case4 $75,000 $50,000 15,000 25,000 10,000 0,000 5,00 20,000 15,000...
-
At a ski resort, water at \(40{ }^{\circ} \mathrm{F}\) is pumped through a 3-in.diameter, 2000-ft-long steel pipe from a pond at an elevation of \(4286 \mathrm{ft}\) to a snow-making machine at an...
-
On December 1, Discount Electronics Ltd. has three DVD players left in stock. All are identical all are priced to sell at $150. One of the three DVD players left in stock, with serial #1012, was...
-
Steven Phillip Heaton of South Melbourne, Victoria, has been sentenced in the County Court of Victoria to six months imprisonment following his conviction on fraud charges brought by ASIC. Mr Heaton...
-
The article "Objective Measurement of the Stretchability of Mozzarella Cheese" (J. of Texture Studies, 1992: 185-194) reported on an experiment to investigate how the behavior of mozzarella cheese...
-
In the table that follows, complete the balance sheet and sales information for Hoffmeister Industries using the following financial data: Debt ratio: 50% Quick ratio: 0.80 Total assets turnover:...
-
The Lee Corporation's forecasted 2012 financial statements follow, along with some industry average ratios. a. Calculate Lee's 2012 forecasted ratios, compare them with the industry average data, and...
-
Rank the following compounds in order of increasing reactivity toward electrophilic aromatic substitution: Br Br- Br
-
What trends have prompted firms to make significant investments in personal selling? How have these impacted personal selling, and how has it evolved?
-
What is the logic behind depreciation expense?
-
Describe the key traits of a successful salesperson.
-
Outline the differences between a transactional and a consultative relationship.
-
Part of the preapproach planning phase entails a review of how the relationship, product, customer, and presentation strategies can enhance the sales presentation. Explain these strategies and why...
-
The stem and leaf plot shown is called a back-to-back stem-and-leaf plot, and combines two stem and leaf plots. It gives the semi-annual premiums for the girls and boys in Van Buren High School who...
-
Perform the indicated operations. In designing a cam for a fire engine pump, the expression is used. Simplify this expression. (3) (3 4 32
-
Refer to Problem 5-1. Return to the assumption that the company had $5 million in assets at the end of 2015, but now assume that the company pays no dividends. Under these assumptions, what would be...
-
Based on the information in Problem 5-6, assume that Booth has just completed a review of its net operating working capital policies and found that it can reduce its DSO to 60 and achieve an...
-
Start with the partial model in the file Ch 05 Build a Model.xlsx from the textbook's website. Cumberland Industries' financial planners must forecast the company's financial results for the corning...
-
The Power of Trade and Comparative Advantage: Work It Out 3 ? Here's another specialization and exchange problem. This problem is wholly made-up, ? so that you won't be able to use your intuition...
-
Government spending as a fiscal policy tool is used to: A) ?Decrease the national debt B) ?Directly stimulate economic activity by increasing demand C) ?Reduce inflation D) ?Lower interest rates
-
Automobile demand has fallen during a recent recession, and Ana has been laid off from her job on the assembly line. Rajiv recently lost his job as a waiter at a local restaurant. A recent increase...
Study smarter with the SolutionInn App