Based on the following information, how many days of supply of inventory is the firm...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Based on the following information, how many days of supply of inventory is the firm holding (assume 240 days of operation per year)? Do not round intermediate calculations. Round your answer to one decimal place.
Sales
$8,100,000
Cost of goods sold
$6,960,000
Gross profit
$1,140,000
Overhead costs
$800,000
Net profit
$340,000
Total inventory
$2,600,000
Fixed assets
$3,500,000
Long-term debt
$2,600,000
Inventory days' supply: days' supply
Interpret your answer if the industry average inventory days' supply is 30 days. Round your answer to one decimal place.
If the industry average days' supply is 30 days and this firm's IDS is times more, they -Select-havehave noItem 3 inventory management problems.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
