Calculate inventory turnover based on fifo

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Reference no: EM132359834

Question :

Calculate inventory turnover, days in inventory, and current ratio based on FIFO. This information is available for the Automotive and Electronics Divisions of Prestige Motors Ltd for 2018. Prestige Motors uses the FIFO inventory method.

(in millions)

2018

Beginning inventory

$ 36 306

Ending inventory

36 621

Current assets

133 089

Current liabilities

143418

Cost of sales

353919

Sales

421 299


Required

(a) Calculate inventory turnover, days in inventory, and current ratio for Prestige Motors Ltd for 2018.

(b) If a company has a low inventory turnover or high days in inventory, is it considered to be a good or bad sign for the entity's shareholders? Explain your answer.

Reference no: EM132359834

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