Calculate what the average investment in inventory

Assignment Help Finance Basics
Reference no: EM13300994

Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case.

a. The firm has sales of $600,000, a gross profit margin of 10%, and an inventory turnover ratio of 6.
b. The firm has a cost-of-goods-sold figure of $480,000 and an average age of inventory of 40 days.
c. The firm has a cost-of-goods-sold figure of $1.15 million and an inventory turnover rate of 5.
d. The firm has a sales figure of $25 million, a gross profit margin of 145, and an average age of inventory of 45 days.

Complete all parts of the problem and explain how you attained your outcome.

 

Reference no: EM13300994

Questions Cloud

Find how much energy is required to ionize this atom : A hydrogen atom is initially at n =3 state. find How much energy is required to ionize this atom
What is the internal rate of return on each investment : A firm has two $1,000, mutually exclusive investment alternatives with the following cash inflows. The cost of capital is 6 percent.
Explain ion with the most negative charge : Which of the following is likely to form an ion with the most negative charge? A) aluminum B) sulfur C) chlorine D) argon
What is the lateral magnification : An object is placed 50 cm in front of a convex mirror and its image is found to be 20 cm behind the mirror. What is the lateral magnification
Calculate what the average investment in inventory : Complete all parts of the problem and explain how you attained your outcome.
Explain atoms is least likely to form an ion : Which of the following atoms is least likely to form an ion. A) fluorine B) magnesium C) silicon D) sodium 2.For which of the following atoms do we not try to apply the octet rule? A) oxygen B) nickel C) sodium D) xenon
What will be the amount of your gain or loss : Currently, bonds of this particular risk class are yielding investors 9%. A cash shortage has forced you to instruct you to instruct your treasurer to liquidate the bond.
Find the surface area of the filament : The filament of a light bulb has a temperature of 2.97 x 103 °C and radiates 60.0 W of power. Find the surface area of the filament
What is the ratio of the lenghts : Two cylindrical rods have the same mass. One is made of silver (density = 10 500 kg/m3), What is the ratio (silver-to-iron) of the lengths

Reviews

Write a Review

Finance Basics Questions & Answers

  Determination of abnormal return

AT&T announced its intent to acquire TCI. The assets of obtained in the acquisition helped create AT&T Broadband. Three years later, on Monday July 9, 2001,

  Explain the concept of a real option

Finally, explain the concept of a real option and how this can help Joshua and Jim as they continue with their business.

  Bonds-holding period yield

Your boss has again asked for your help. He needs to figure out the holding period yield on a candidate bond for inclusion in a pension bond portfolio and whether your company should purchase it.

  Investors face one tax rate for interest income

If the only violation of the M&M assumptions is that investors face one tax rate for interest income and another tax rate for equity income, what is the implication for the optimal capital structure of a corporation?

  What is the expected amount of the next dividend

Douglass Gardens pays an annual dividend that is expected to increase by 4.1 percent per year. The stock commands a market rate of return of 12.6 percent and sells for $24.90 a share. What is the expected amount of the next dividend?

  Calculation of npv & irr of uneven cash flows

Calculation of NPV & IRR of uneven Cash Flows and Comparing NPV & IRR between two Investment options.

  What is the best estimate of the current stock price

The R Company's last dividend was $1.20. Its dividend growth rate is expected to be at 35% for 3 years, after which dividends are expected to grow at a constant rate of 5% forever. Its required return (rs) is 15%. What is the best estimate of the ..

  Define preparation of the table to amortize the premium

Define Preparation of the table to amortize the premium using the effective interest method

  Recompute the effective cost of credit

Lola's Ice Cream recently arranged for a line of credit with Longhorn State Bank of Dallas. The terms of contract called for a $100,000 maximum loan with interest set at 2% over prime.

  Treasury bonds and current yield

A treasury bond is quoted at a price of 106:23 with a 3.50 percent coupon. The bond pays interest semi-annually. Find out the current yield on one of these bonds?

  What are the two projects irrs at these same cost of capital

Your division is considering two investment projects, each of which requires an upfront expenditure of $15 million. You estimate that the investments will produce the following net cash flows.

  Computation of yield to maturity when interest is paid

Computation of yield to maturity when interest is paid and compounded annually and bond's rate of return earned

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd