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Naya [18.7K]
3 years ago
10

Imagine that you are the supply chain manager for the Magic Widget company and you need to measure your supply chain performance

. The chart shows the financial variables that you will need to perform your task.
Financial Variables

Total Assets (in $ billions) 15.3
Cost of Goods Sold (in $ billions) 19.8

Inventory:
Raw Material Inventory (in $ billions) 1.10
Work-in-progress Inventory (in $ billions) 2.20
Finished Goods Inventory (in $ billions) 0.82

Required:
Compute the percentage of assets committed to inventory and inventory turnover. Round your answers to the first decimal place.
Business
1 answer:
jasenka [17]3 years ago
4 0

Answer:

The percentage of assets committed to inventory is 26.9%.

Inventory turnover is 4.8 times.

Explanation:

<em>Inventory as a percentage of assets = total inventory / total assets × 100</em>

                                                            = (1.10 + 2.20 + 0.82) / 15.3 × 100

                                                            = 26.9% (rounded)

<em>Inventory turnover = cost of sales / inventory </em>

                               = 19.8 / (1.10 + 2.20 + 0.82)

                               = 4.8 times (rounded)

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