Is there a greater financial benefit to increasing inventory turnover from 10.000 to 20.000 than increasing turnover from 1.000 to 2.000? Create a chart to show what will happen if we pursue further improvements.

- Inventory carrying cost of 32.4%

 

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Table One: Last Year's Balance Sheet and Income Statement for Sequoia Distributing Balance Sheet $1,573,180 Cash $6,844,260 Accounts Receivables $5,329,830 Inventory $6,020,950 Accounts Payable Income Statement Sales Revenue Cost of Goods Sold $36,491,330 $32,352,920 $3,388,410 Net Income Table One: Last Year's Balance Sheet and Income Statement for Sequoia Distributing Balance Sheet $1,573,180 Cash $6,844,260 Accounts Receivables $5,329,830 Inventory $6,020,950 Accounts Payable Income Statement Sales Revenue Cost of Goods Sold $36,491,330 $32,352,920 $3,388,410 Net Income

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A higher inventory turnover ratio reduces the average inv... View the full answer