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Arisa [49]
4 years ago
12

A manufacturing company producing medical devices reported $60 million in sales over the last year. At the end of the same year,

the company had $20 million worth of inventory of ready-to-ship devices. Assuming that units in inventory are valued (based on cost of goods sold) at $1000 per unit and are sold for $2000 per unit, what is the company’s annual inventory turnover?
Business
1 answer:
Svetradugi [14.3K]4 years ago
8 0

Answer:

Annual average inventory in days (no of times) = 1.5 times

Explanation:

<em>Annual inventory turn over is the average length of time it takes for inventor to be sold and replaced.</em>

<em>Average inventory turnover = average inventory/ cost of sold × 365</em>

<em>Average inventory turnover (in No of  times) = C</em>ost of sold sold /average inventory

Cost of goods sold

= (1000/2000) × 60 million

= $30 million

Closing Inventory = $20 million

Annual average inventory

= $20/ 30 × 365 days

= 243.days

Annual average inventory

= cost of sold sold /average inventory

=30/20

= 1.5 times

Annual average inventory in days =  243.days

Annual average inventory in days (no of times) = 1.5 times

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4 0
4 years ago
Last year, Capriana Corporation (CC) had sales of $200 million, and its inventory turnover ratio was 5.0. The CC’s current asset
Brilliant_brown [7]

Answer:

quick ratio  = 0.72

Explanation:

given data

sales = $200 million

inventory turnover ratio = 5.0

current assets totaled = $100 million

current ratio = 1.2

solution

we get here quick ratio so here

inventory turnover ratio = \frac{sales}{inventory}   ...............1

put here value

inventory = \frac{200}{5}

inventory = 40

and

now we get current liability

current ratio = \frac{current\ assets}{current\ liability}   ...............2

put here value

current liability = \frac{100}{1.20}

current liability = 83.33

and here quick ratio

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