Consider the following two processes. Process 1 has inventory turns of 15 per month and Process 2 has inventory turns of 50 per year. If each process has a throughput of 100 units per day. How much inventory is in process 1 and in process 2 respectively? Assume 30 days per month and 365 days per year. Show Calculation/

ExplanationProcess 1 inventory ______________________

Process 2 inventory ________________________

2. Consider the following financials information collected from the Income Statement and Balance Sheet of Sofas-R-Us, a furniture manufacturer in Greenbrier, NC. WIP = Work-in- Progress and FG= Finished Goods? Current Year (in Million $) Pro-Forma (Next Year) Net Annual Sales 300 250 ( forecasted) Cost of Goods Sold 200 125 ( forecasted) Average Inventory (WIP 50 ? and FG) Accounts Receivable 60 ? Suppose the process flow times at the factory and the accounts receivables/sales organization remain unchanged, what would be the forecasted average inventory and accounts receivable for the following year? Show Calculation/ Explanation Average Inventory Accounts Receivable =