Question

Baker Mfg Inc. wishes to compare its inventory turnover to those of industry​ leaders, who have turnover of about 13 times per year and 8​% of their assets invested in inventory. Baker Mfg. Inc. Net Revenue ​$27,500 Cost of sales ​$19,690Inventory ​$1,240Total assets ​$17,990 What is​ Baker's inventory​ turnover?

Answer 1

Answer:

inventory​ turnover = $15.879

Explanation:

given data

Net Revenue = ​$27,500

Cost of sales = ​$19,690

Inventory ​= $1,240

Total assets = ​$17,990

assets invested = 8%

to find out

Baker's inventory​ turnover

solution

we will apply here formula for  inventory​ turnover that is express as

inventory​ turnover = $\frac{cost of goods sold}{Inventory investment}$   ..........................1

put here value we get

inventory​ turnover = $\frac{19,690}{1240}$

inventory​ turnover = $15.879