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:

Minimum Wage

A legally established lower limit on the wage that employers can pay their workers.

Unemployment

The situation of someone of working age and willing to work being unable to find employment.

Off the Books

Financial transactions or employment that are not officially recorded or declared, often to avoid taxes or adhere to regulations.

Inefficiently High Quality

A form of inefficiency in which sellers offer high-quality goods at a high price even though buyers would prefer a lower quality at a lower price; often the result of a price floor.