Use the Information That Follows Taken from Tyler Company's Financial

question 90

Essay

Use the information that follows taken from Tyler Company's financial statements for the years ending December 31, 2017 and 2016.
$\begin{array}{lc}\text { Balance Sheet Information }&2017&2016\\\text { Assets }\\ \text { Cash } & \$ 90&\$50 \\ \text { Accounts receivable } & 60&80 \\ \text { Inventory } & 40&80 \\\text { Land, building, and equipment } & \underline{230} & \underline{270}\\\text { Total Assets } & \underline{ \$ 420}& \underline{\$480} \\\end{array}$

$\begin{array}{lrr}\text { Liabilities and Shareholders' Equity }\\\text { Accounts payable } & \$ 5 & \$ 85 \\\text { Common stock } & 260 & 260 \\\text { Retained earnings } & \underline{155} & \underline{135 }\\\text { Total Liabilities \& Shareholders' Equity } & \$ \underline{420} & \$ \underline{480} \\\end{array}$

$\begin{array}{lrr}\text { Income Statement Information }\\ \text { Sale revenue } &\$850\\ \text { Cost of goods sold } & \underline{600}\\ \text {Gross profit } &\$250\\ \text { Operating expenses} & \underline{230}\\ \text {Net income } & \underline{\$20}\\\end{array}$


If the industry in which Tyler is a member has an inventory turnover of 9 times, determine if Tyler is more or less efficient at converting inventory into sales than the average firm in its industry during 2017.

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Definitions:

Complex Solutions

Strategy or answers to problems that are multifaceted and require multifarious approaches for resolution.

Deviation-Amplifying Feedback

A process in systems whereby deviations or changes are amplified rather than corrected, leading to significant changes or transformations.

Multiple

Characterized by having or involving several parts, elements, or members.

Competing

Engaging in an effort to win or outperform others in a particular activity or field.