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trasher [3.6K]
3 years ago
12

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the b

alance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, how many weeks of supply does the firm hold?
Business
1 answer:
faltersainse [42]3 years ago
5 0

Answer: 4.16 weeks.

Explanation:

To calculate this we will use the Weeks of Supply formula as well as an assumption of a 52 week year. There are a couple of variants to the formula but for the purpose of the details given here we shall use the following,

Weeks of supply = (Average inventory/ Cost of goods sold) * 52 weeks

= (2/25)*52

= 4.16

The weeks of supply the firm holds is therefore 4.16 weeks.

If you have any questions or need any clarification, please do react or comment. Thank you.

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You’ve collected the following information from your favorite financial website.
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-9.92%

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3 0
3 years ago
A company's Office Supplies account shows a beginning balance of $630 and an ending balance of $460. If office supplies expense
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The correct answer is that there was $3,080 worth of office supplies purchased during the period.

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