The following selected financial data pertain to four unidentified companies: This financial information pertains to the following
Question:
This financial information pertains to the following companies:
a. Full-line department store
b. Wholesale fish company
c. Automobile dealer (both new and used cars)
d. Restaurant
Required:
Match each company with its financialinformation.
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
COMPANIES 1 3 Balance Sheet Data (component percentage) Cash 11.6 5.4 7.1 6.6 Accounts receivable 4.6 18.9 8.8 35.6 65.7 Inventory Property and equipment 7.0 45.8 26.0 20.3 56.0 10.1 21.9 Income Statement Data (component percentage) Gross profit Profit before taxes 56.7 36.4 14.1 15,8 0.9 1.1 2.7 1.4 Selected Ratios Current ratio 0.7 2.1 1.2 1.3 Inventory turnover ratio Debt-to-equity ratio 16.7 30.0 3.5 5.6 3.3 1.8 3.8 3.1
Step by Step Answer:
1 Restaurant high inventory turnover high property equ...View the full answer
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
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