Solution-Evaluate valdezs inventory turnover trend

Evaluate valdezs inventory turnover trend

Reference no: EM13547943

Inventory Turnover Analysis

The following information for Valdez Industries was taken from the company's financial statements (amounts in thousands):

	2008	2007	2006	2005
Sales	$24,000	$18,000	$15,000	$12,000
Cost of goods sold	19,600	13,900	10,200	7,200
Inventory	1,400	1,200	910	750
Accounts receivable	3,900	3,600	4,100	3,200
Accounts payable	2,300	1,200	1,500	1,800
Net income	560	320	510	430

Instructions:

1. Compute the inventory turnover and the number of days' sales in inventory for the years 2006-2008. Use average inventory in your calculations.

2. Evaluate Valdez's inventory turnover trend.

Reference no: EM13547943

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Evaluate valdezs inventory turnover trend

Reference no: EM13547943

Reference no: EM13547943

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