Lusons manager is quite concerned about its inventory turnover and would like to improve the turnover. The
Question:
Lusons financial objective is to continue with the same growth rate in sales for 2015. Its cost of goods sold is 60% of the sales.
Requirements
1. What is the inventory turnover for 2014?
2. What are the projected sales in 2015?
3. With the projected growth in sales in 2015, if Luson wants to increase inventory turnover to 5.5 times, what should the inventory be?
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Related Book For
Financial Accounting
ISBN: 978-0132889711
1st Canadian Edition
Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper
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