Exercise $5-16$A $($Static$)$ Inventory turnover and average days to sell LO $5-5$

The following accounting information pertains to two grocery store chains. One grocery store chain has a market strategy of selling

only high$-$end organic food products while the other grocery store sells less expensive foods that are traditionally grown with the use

of pesticides, synthetic fertilizers, and$/$or genetically modified organisms.

The company selling traditional produced foods has an average inventory balance of $$45,000,$ while the company selling organic

foods has an average inventory balance of $$40,000.$

Required

a$.$ Complete the table by filling in missing amounts.

b$.$ Which grocery store chain is taking a lower cost$-$higher volume strategy as it relates to sales?

c$1.$ Calculate the inventory turnover and average days to sell inventory for each grocery store chain.

c$2.$ Based on your calculations, which grocery chain will be required to reorder inventory more frequently?

Complete this question by entering your answers in the tabs below.

ReqA

Req B

Req C$1$

Which grocery store chain is taking a lower cost$-$higher volume strategy as it relates to sales?

Lower cost$-$higher volume strategy