Water Forms, Inc

question 288

Multiple Choice

Water Forms, Inc. has sales of $268,900, net income of $34,800, net fixed assets of $146,700, and current assets of $98,200. The firm has $46,900 in inventory. What is the common-size statement
Value of inventory?

• A) 16.82 %
• B) 17.44 %
• C) 19.15 %
• D) 26.09 %
• E) 31.97 %

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Definitions:

Margin

Net operating income divided by sales.

Turnover

Sales divided by average operating assets.

Manufacturing Cycle Efficiency

A metric that measures the efficiency of the manufacturing process by comparing the value-added production time to the total production time.

Non-value-added Time

Time spent in the production process that does not contribute to the end product's value or quality, often targeted for reduction in lean manufacturing practices.