Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turmover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Enter "above" (without the quotes) for the target inventory if it is more than the published rate. Round inventories to the nearest dollar and inventory turnover to the nearest tenth. Cost of Beginning Ending Average Inventory Published Target Average Net Sales Goods Sold Inventory Inventory Inventory Turnover Rate Inventory $378,000 $49,000 $56,000 $ 52500 7.2 5.2

Assuming that all net sales figures are at retail and all cost of goods sold figures are at cost, calculate the average inventory and inventory turmover for the following. If the actual turnover is less than the published rate, calculate the target average inventory necessary to come up to industry standards. Enter "above" (without the quotes) for the target inventory if it is more than the published rate. Round inventories to the nearest dollar and inventory turnover to the nearest tenth. Cost of Beginning Ending Average Inventory Published Target Average Net Sales Goods Sold Inventory Inventory Inventory Turnover Rate Inventory $378,000 $49,000 $56,000 $ 52500 7.2 5.2

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter10: Forecasting Financial Statement

Section: Chapter Questions

Problem 5QE: Use the following hypothetical data for Walgreens in Years 11 and 12 to project revenues, cost of...

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