The Following Data Are Pulled from a Recent Walsh Manufacturing

question 76

Essay

The following data are pulled from a recent Walsh Manufacturing annual report.
Assets
Raw material inventory $120,000
Work-in-process inventory $50,000
Finished goods inventory $300,000
Property,plant & equipment $500,000
Other assets $200,000
Total assets $1,170,000
Condensed Income Statement
Revenue $2,000,000
Cost of goods sold $600,000
Other expenses $1,000,000
Net income $400,000
Calculate: (a)Percent invested in inventory, (b)Inventory turnover,and (c)Weeks of supply.

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Definitions:

Metamorphic Rocks

Rocks that have been transformed by heat, pressure, or chemically active fluids, altering their original composition or structure.

Plutonic Rocks

Intrusive igneous rocks that crystallize deep underground from magma, such as granite and diorite.

Continental Crust

The relatively thick part of the Earth's crust that forms the large landmasses. It is generally older, less dense, and composed mainly of granite.

Plate Boundary

Boundaries at the junction of two tectonic plates, frequently linked with earthquakes and volcanic actions.