What is the firm inventory turnover

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Question - Consider a firm with net income of $160 million, revenue of $420 million, and cost of goods sold of $175 million.

Required -

a) If the balance sheet shows $16 million of inventory, what is the firm's inventory turnover?

b) Assuming that they operate 52 weeks a year, what is the firm's weeks of supply?

c) Within the firm's industry, the average turnover is 12 turns per year. Is the firm's performance better or worse than the industry average?

Reference no: EM132772499

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