Pink, Inc. sells women's clothes. Provided below is selected financial statement information: Pink, Inc. Selected Financial Statement
Question:
Pink, Inc. sells women's clothes. Provided below is selected financial statement information: Pink, Inc. Selected Financial Statement Data (amounts shown in thousands)
Fiscal Year 2005 2004
Net sales $47,895 $42,589
Cost of Goods Sold (35,952) (32,588)
Gross profit $11,943 $10,001
Inventory $ 5,548 $ 4,948
Required:
a. Compute the inventory turnover ratio for 2005. b. Pink, Inc. projects that sales will grow at a compound rate of 7% per year for the years 2006-2008, that the cost of goods sold to sales percentage will equal that realized in 2005, and that the inventory turnover will remain constant at the 2005 level.
Required
Compute the forecasted level of inventory from the end of 2006 to 2008.
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain