Question

A firm with sales of $500,000 has average inventory of $200,000. the industry average for inventory turnover is four time a year. what would be the reduction in inventory if this firm were to achieve a turnover comparable to the industry average?

Step 1

Inventory turnover measures how many times, on average company sells its entire inventory during the year. A high inventory turnover ratio is a positive sign. It indica...

Tagged in

Q: You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street...

A: Calculation of size of settlement:We have both the cash flows that is which occurs today and which o...

Q: ck my ork The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vesse...

A: Calculation of Range of Opportunity Cost of Capital using IRR rule:The cash flows in the initial yea...

Q: Ms. Cristiana Piccini is valuing an investment that pays her $27,000 per year for the first ten year...

A: Calculation of Value of Investment: Excel Spreadsheet:

Q: Please can you show me step by step to solve for OFC? Thank

A: OCF is Operating Cashflow which is the money a firm generates through its regular operations.

Q: Case Study #2: Chapter 5 Business Analysis - Harry, a friend of yours, is taking a course in economi...

A: If we have money today, we can use it in two ways:We can use the money to buy something that we want...

Q: The following companies have different financial statistics. Texas Burgers Tom's Hot Dogs Gr...

A: Texas Burgers:It has got projects that can lead to healthy growth of 22% in sales and earningsLimite...

Q: Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 3.80 percent that s...

A: Calculation of cost of preferred stock:

Q: I've been studying simulations. Not sure if you'll be able to answer this question from the informat...

A: For a call option, if the strike price of the option is 52, and the underlying stock is trading at a...

Q: Mexican Motor's market cap is 200 billion pesos. Next year's cash flow is 8.6 billion pesos. Securit...

A: Mexican Motor's market cap, E = 200 billion pesos.Next year's cash flow, C = 8.6 billion pesos.Secu...

Sorry about that. What wasn’t helpful?