Efficient Production Incorporation has annual sales of $5.8 million and a gross profit margin of 30%. Its
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Efficient Production Incorporation has annual sales of $5.8 million and a gross profit margin of 30%. Its endofquarter inventories are
a. Find the average quarterly inventory, and use it to calculate the firm’s inventory turnover and the average age of inventory.
b. Assuming that the company is in an industry with an average inventory turnover of 4.8, how would you evaluate the activity of Efficient Production’s inventory?
Transcribed Image Text:
Quarter Inventory 1 $ 300,000 1234 570,000 890,000 430,000
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b Evaluation of Inventory Activity Efficient Production s inventory turnover is approxim…View the full answer
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Related Book For
Principles Of Managerial Finance
ISBN: 9781292018201
14th Global Edition
Authors: Lawrence J. Gitman, Chad J. Zutter
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