EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175859
Author: Munson
Publisher: VST
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Chapter 11, Problem 5P

a)

Summary Introduction

To determine: The inventory turnover of Company B.

Introduction: Supply chain management is one of the important elements of a business which impacts business product development. With expanding business in global conditions, supply chain activities can impact on the cost effectiveness of the business.

b)

Summary Introduction

To determine: Percentage of assets committed to inventory in Company B.

c)

Summary Introduction

To Compare: Performance of Company B with industry leaders.

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Use the following financial statements of Heifer Sports Inc. in Table 14.14 to find Heifer’s:a) Inventory turnover ratio in 2012.b) Debt/equity ratio in 2012.c) Cash flow from operating activities in 2012.d) Average collection period.e) Fixed-asset turnover ratio.f) Return on equity.
1.3) Evaluate the business level strategy implemented by Drip Footwear.
Revenue and expense data for Bluestem Company are as follows:   Year 2 Year 1 Administrative expenses $ 37,000 $ 20,000 Cost of goods sold 350,000 320,000 Income tax expense   40,000 32,000 Sales 800,000 700,000 Selling expenses 150,000 110,000 ​ (a) Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales. (b) Comment upon significant changes disclosed by the comparative income statement. Round percentages to one decimal place.

Chapter 11 Solutions

EBK PRINCIPLES OF OPERATIONS MANAGEMENT

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