These are spreadsheet PROBLEMS. Use Excel! Please show work so I can better understand the process and procedure

1. A retailer in Las Vegas has an ending inventory of $250,000 as at December 31, 2012 and the following accounting information.

Month	Ending Inventory	Cost of Goods Sold
January	$225,000	$1,200,000
February	$325,000	$1,250,000
March	$240,000	$1,350,000
April	$325,000	$1,500,000
May	$460,000	$950,000
June	$220,000	$850,000
July	$85,000	$1,650,000
August	$156,000	$1,325,000
September	$220,000	$1,750,000
October	$265,000	$850,000
November	$100,000	$2,200,000
December	$350,000	$3,500,000

1. Compute the monthly inventory turnover ratio for each of the twelve months.
2. What are the annual cost of goods sold and the average inventory for the year?
3. Compute the annual inventory turnover ratio. How is the retailer's performance compare to the industry standard, assuming its business is similar to Wal-Mart's?

12. A Las Vegas, Nevada, manufacturer has the option to make or buy one of its component parts. The annual requirement is 20,000 units. A supplier is able to supply the parts for $10 each. The firm estimates that it costs $600 to prepare the contract with the supplier. To make the parts in-house, the firm must invest $50,000 in capital equipment and estimates that the parts cost $8 each.

1. Assuming that cost is the only criterion, use break-even analysis to determine whether the firm should make or buy the item. What is the break-even quantity and what is the total cost at the break-even point?

1. Calculate the total costs for both options at 20,000 units. What is the cost savings for choosing the cheaper option?

14. A buyer received bids from three suppliers for a vital component part for its latest product. Given the following information, use total cost analysis to determine which supplier should be chosen. Late delivery of the component results in 70 percent lost sales and 30 percent back orders of finished goods.

Order lot size	2,000
Requirements (annual forecast)	240,000 units
Weight per engine	40 pounds
Order processing cost	$200/order
Inventory carrying rate	20% per year
Cost of working capital	10% per year
Profit margin	15%
Price of finished goods	$10,500
Back-order cost	$120 per unit

Unit Price	Supplier 1	Supplier 2	Supplier 3
1 to 999 units/order	$200.00	$205.00	$198.00
1,000 to 2,999 units/order	$195.00	$190.00	$192.00
3,000 + units/order	$190.00	$185.00	$190.00
Tooling Cost	$12,000	$10,000	$15,000
Terms	2/10, net 30	1/15, net 30	1/10, net 20
Distance	120 miles	100 miles	150 miles
Supplier Quality Rating	2%	1%	2%
Supplier Delivery Rating	1%	1%	2%

Truckload (TL 40,000 lbs): $0.95 per ton-mile

Less-than-truckload (LTL): $1.20 per ton-mile

Note: per ton-mile = 2,000 lbs per mile; number of days per year = 365