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:

Nuclear Energy

A form of energy produced through nuclear reactions, such as in nuclear fission or fusion, often used for generating electricity.

Government Laboratory

A research facility owned and operated by the government to conduct scientific research and development.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its owners or shareholders as dividends.

Undistributed Profits

Profits earned by a company that are not paid out as dividends to shareholders but are retained for reinvestment in the business or held as reserves.