If Company A has a stock turnover of 2.8 and Company B has a stock turnover of
Question:
If Company A has a stock turnover of 2.8 and Company B has a stock turnover of 3.2, who has the better annual stock turnover rate? Please suggest two strategies the weaker company should implement to improve its stock turnover?
2. Calculate the planned BOM inventory for September given the following information. Please show all calculations.
- Stock-to-Sales Ratio = 2.30
- Planned sales for September = $21,300.00
3. A firm wants to maintain an average stock of $35,400.00 every year. Last year, the firm had a 4.10 stock turnover rate. This year, management forecasts that stock turnover should increase to 4.40. By what dollar volume must sales increase for this forecasted turnover to occur? Please show all calculations.
4. Please use the format shown below for this question. Replicate this chart in excel and calculate the totals for 2016 and 2017, and the percentage increase or decrease sales in 2017 by month based on the sales figures provided for the men's wallets department. Please round to two decimal points.
| Month | Sales in 2016 | Sales in 2017 | Percentage Increase / Decrease |
January $45,000.00 $47,000.00
February $55,000.00 $48,000.00
March $47,000.00 $51,000.00
April $85,000.00 $93,300.00
May $78,500.00 $109,910.00
June $62,000.00 $58,000.00
TOTALS
5. Please refer to the figures in question #4. The buyer for men's wallets was told to increase sales by 12% for the first six months of 2017. Did the buyer achieve this goal? What month drove the sales increase or decrease?
6. Please use the format shown below for this question. Replicate this chart in excel and calculate the total annual stock turnover rate and stock-to-sales ratios by month based on the following monthly sales and inventory figures. Please round to two decimal points.
| Month | Sales | Retail Stock | Stock-to-Sales |
1 $11,686.00 $18,979.00
2 $12,535.00. $19,226.00
3 $14,889.00. $22,678.00
4 $15,756.00. $21,991.00
5 $14,342.00. $20,698.00
6 $13,676.00 $17,834.00
7 $15,889.00 $22,793.00
8 $16,756.00 $23,545.00
9 $15,342.00 $21,698.00
10 $14,676.00 $17,438.00
11 $16,889.00 $24,678.00
12 $17,756.00 $24,545.00
EOM $22,756.00
Expert Answer:
SOLUTION 1 Comparing stock turnover rates Company A has a stock turnover rate of 28 while Company B has a stock turnover rate of 32 The higher the stock turnover rate the better as it indicates that t... View the full answer
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
