Padco averages $15 million worth of inventory in all of its worldwide locations. they operate 51 weeks a year and each week averages $3 million in sales (at cost). their inventory turnover is 10.2 turns.
Inventory turnover is a financial ratio that demonstrates how frequently a company sells and replaces inventory over a specific time frame. The days it takes to sell the company's inventory on hand can then be determined by multiplying the number of days in the period by the inventory turnover formula.
Businesses can improve their decisions about pricing, production, marketing, and the acquisition of new inventory by calculating inventory turnover.
Inventory turnover quantifies how frequently a business can replenish the stocks it has sold during a specific time period. A slower ratio suggests either strong sales or insufficient inventory, while a quicker ratio suggests either weak sales or high sales.
The industries with the largest inventory turnover rates tend to be those with low margins and high volumes, like supermarkets and merchants.
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Answer:
Firm’s sales uncollected for year is 42 days.
Explanation:
Account receivable turnover ratio = $621,000 / $70,422
Account receivable turnover ratio = 8.69
Thus, accounts receivable turnover ratio is 8.69
Average collection period = 365 / Account receivable turnover ratio
Average collection period = 365 days / 8.69
Average collection period = 42.00
Thus, firm’s sales uncollected for year is 42 days.
Answer:B.40.9%
Explanation:
If $675 spend on mortgage and his monthly income is $1650
So the percentage will be:
$675 / $1650 × 100
= 0.409 ×100
= 40.9%
Answer:
$335,428
Explanation:
The computation of the plane operating cost is shown below:
Plane Operating Cost = Fixed cost + (Variable cost per unit × quantity) + (Variable cost per unit × quantity)
= $41,490 + ( $2,839 × 101 flights) + ($23 × 313 passengers)
= $41,490 + $286,739 + $7,199
= $335,428
We only considered the planned activity as we have to compute the plane operating cost for the planning budget
