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 end-of-quarter 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?

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Related Book For  answer-question

Principles Of Managerial Finance

ISBN: 9781292018201

14th Global Edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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