Question: Motion Auto has the following information for the years ending December 31, 2014 and 2013: Requirements 1. Compute the rate of inventory turnover for Motion
Motion Auto has the following information for the years ending December 31, 2014 and 2013:
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Requirements
1. Compute the rate of inventory turnover for Motion Auto for the years ended December 31, 2014 and 2013. Round the result to two decimal places.
2. What is a likely cause for the change in the rate of inventory turnover from 2013 to 2014?€ƒ
2013 (In thousands) Sales Revenue Cost of Goods Sold 2014 $242 $239 Beginning Inventory 22 $ 38 144 182 152 Net Purchases Cost of Goods Available 174 Ending Inventory Cost of Goods Sold 13 161 81 Gross Profit Operating Expenses Net Income 160 79 54 25 26
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Req 1 Numbers are in thousands Req 2 Motion Autos cost of goods sold remained relatively co... View full answer
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