(Ratio analysis) Assuming a 360-day year, calculate what the average investment in inventory would be...
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(Ratio analysis) Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case. a. The firm has sales of $600,000, a gross profit margin of 11 percent, and an inventory turnover ratio of 5 . b. The firm has a cost-of-goods-sold figure of $500,000 and an average age of inventory of 40 days. c. The firm has a cost-of-goods-sold figure of $1.1 million and an inventory turnover rate of 7 . d. The firm has a sales figure of $26 million, a gross profit margin of 17 percent, and an average age of inventory of 45 days
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