The Following Information Is Available from Recent Financial Statements of Competitor

question 125

Essay

The following information is available from recent financial statements of Competitor A and Competitor B: $$\begin{array} { | l | r | r | } \hline & \text { Competitor A } & \text { Competitor B} \\\hline \text { Ending inventory } & \$ 6,031 & \$ 4,816 \\\hline \text { Beginning inventory } & 6,162 & 5,044 \\\hline \text { Cost of goods sold } & 21,761 & 27,257 \\\hline \text { Sales } & 29,656 & 36,704 \\\hline\end{array}$$ Requirement: (a) Calculate the inventory turnover and days in inventory for both companies. (b) What conclusion concerning the management of inventory can be drawn from these data?

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Definitions:

Locus of Control

A psychological concept that categorizes individuals by their belief in personal control over life events, either as internal (self-control) or external (controlled by outside factors).

Studied Variables

Elements or factors that are measured or manipulated within research to explore their effects on outcomes of interest.

Reinforcement

In psychology, it refers to a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Clinical Psychology

involves the assessment, diagnosis, treatment, and prevention of mental disorders, emphasizing a deep understanding of individual behavior and mental processes.