Use the Following Selected Financial Information to Answer the Questions

question 39

Essay

Use the following selected financial information to answer the questions that follow.
$\begin{array}{lrrr}&\text { Year } 3&\text { Year } 2&\text { Year }1\\\text { Inventory } & \$ 56,000& \$ 64,000 & \$ 53,000 \\\text { Total assets } & 1,205,000 & 952,000 & 945,000 \\ \text { Cost of goods sold } & 360,000 & 420,000 & 440,000\\\text { Net income } & 65,000&25,000&16,000 \\\end{array}$

A) Calculate this company's inventory turnover ratid for Year 3 and Year 2.

B) Determine the number of days it would take to turn over the entire inventory at December 31, Year 3 and Year 2.

C) What problens are apparent with the compary's inventory management?

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Definitions:

Blind Date

A social engagement between two people who have not previously met, typically arranged by a mutual acquaintance.

Demographic Characteristics

Statistical aspects of a population such as age, race, gender, income level, and education.

Values And Attitudes

Deeply held beliefs and feelings that influence an individual's choices and behaviors.

Interest And Attentiveness

The state of wanting to learn more about something or someone, combined with the quality of giving close and continuous attention.