The Following Data Are Pulled from a Recent Walsh Manufacturing

question 98

Essay

The following data are pulled from a recent Walsh Manufacturing annual report.
Assets
Raw material inventory $150,000
Work-in-process inventory $50,000
Finished goods inventory $330,000
Property, plant & equipment $500,000
Other assets $140,000
Total assets $1,170,000
Condensed Income Statement
Revenue $2,000,000
Cost of goods sold $700,000
Other expenses $1,000,000
Net income $300,000
Calculate: (a) Percentage invested in inventory, (b) Inventory turnover, and (c) Weeks of supply.

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Definitions:

Extreme Values

Data points that are significantly higher or lower than the majority of a data set, often considered as outliers or anomalies.

Variance

A statistic that represents the extent to which a set of numbers is spread out, calculating the average of the squared differences from the Mean.

Original Units

The units in which the data was originally measured or collected before any transformations or conversions.

Skewed

A description of a statistical distribution that is not symmetrical, indicating that data points tend to extend more to one side of the mean than the other.