Calculate firm inventory turnover ratio. ASSETS Cash Accounts Receivable Inventory Net Plant and Equipment Total Assets Balance

Calculate firm inventory turnover ratio.

 

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ASSETS Cash Accounts Receivable Inventory Net Plant and Equipment Total Assets Balance Sheet As of December 31, 2007 Long-Term debt Common Stock LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Accrued Expenses Paid-In capital Retained earnings Total Liabilities and Stockholders' Equity Sales (all on credit) Cost of Goods Sold Gross Profit Sales and Administrative Expense Fixed Lease Expenses MARNI COMPANY Income Statement For the Year Ended December 31, 2007 Depreciation Operating Profit Interest Expense Profit before Taxes Taxes (40%) Net Income O 0.4x 0.1x Refer to the figure above. The firm's inventory turnover ratio is Ⓒ10x Ⓒ5x 200,000 650,000 $1.000.000 $50,000 100,000 $100,000 90,000 250.000 100,000 50.000 410.000 $1,000,000 $2,000,000 1.750.000 250,000 30,000 10,000 60.000 150.000 25.000 125,000 50,000 $75,000 ASSETS Cash Accounts Receivable Inventory Net Plant and Equipment Total Assets Balance Sheet As of December 31, 2007 Long-Term debt Common Stock LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable Accrued Expenses Paid-In capital Retained earnings Total Liabilities and Stockholders' Equity Sales (all on credit) Cost of Goods Sold Gross Profit Sales and Administrative Expense Fixed Lease Expenses MARNI COMPANY Income Statement For the Year Ended December 31, 2007 Depreciation Operating Profit Interest Expense Profit before Taxes Taxes (40%) Net Income O 0.4x 0.1x Refer to the figure above. The firm's inventory turnover ratio is Ⓒ10x Ⓒ5x 200,000 650,000 $1.000.000 $50,000 100,000 $100,000 90,000 250.000 100,000 50.000 410.000 $1,000,000 $2,000,000 1.750.000 250,000 30,000 10,000 60.000 150.000 25.000 125,000 50,000 $75,000

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To calculate the inventory turnover ratio we need to divide the cost of goods sold by the average inventory Average inventory can be calculated by add... View the full answer