1. James Inc. wants to compare inventory turnover to industry leaders who has turnover of about 17 times per year and 9% of their assets invested in inventory. Total assets are $18,500, Inventory is $2,250, cost of sales is $24,500, and net revenue is $33,500. What is their inventory turnover, percent of assets committed to inventory, and James’ performance compared to industry leaders?
Expert Answer
Total assets are $18,500
Inventory is $2,250
Cost of sales is $24,500
Net revenue is $33,500
(a)
Inventory turnover = Cost of goods sold / Inventory investment
=24500/2250
=10.88
(b)
Percent inventory = (Total inventory investment /Total assets) * 100
=2250/18500
=12.16 (I did not
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