Presented Below Are Selected Data from the Financial Statements of Wave

question 27

Essay

Presented below are selected data from the financial statements of Wave Company for 2019,2018,and 2017.
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$\begin{array}{lrrr}&2019&2018&2017\\\text { Total assets } & \$ 1,205,000 & \$ 952,000 & \$ 945,000 \\\text { Cost of goods sold } & 360,000 & 420,000 & 440,000 \\\text { Inventory } & 56,000 & 64,000 & 53,000 \\\text { Net income } & 65,000 & 25,000 & 16,000\end{array}$ ​
A) Calculate Wave's inventory tumover ratio for 2019 and 2018 .
B) How many days would it take to sell the entire inventory at December 31,2019? At December 31,2018? Assume 360 days in a year.
C) What problems do you see in the company's inventory management?

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Definitions:

Personal Construct

An individual's unique mental framework used to interpret and understand the world around them.

Psychological Disorders

Patterns of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person affected.

Kelly's Conception

A psychological theory proposed by George Kelly, focusing on personal constructs as fundamental elements in understanding and predicting human behavior.

Personal Construct Theory

A psychological theory that suggests individuals develop personal constructs about how the world works, which they then use to interpret events.