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kodithompson

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Question 1

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.

Question 2

A grocery chain is interested in exploring the impact effective supply-chain management would have. Suppose that for every $1 of sales 4% is profit, 50% is spent in the supply chain, and the remaining 46% is evenly divided between fixed and variable costs. If the chain can save $1 in the supply chain it would take how many dollars of increased sales to have the same increase in profit? Assume that fixed costs are fixed so that the portion of increased sales allocated to fixed costs is instead profit (27% profit margin combined now).


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Marked as best answer by kodithompson on Dec 3, 2019

amit

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kodithompson

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Reply 2 on: Dec 3, 2019
YES! Correct, THANKS for helping me on my review


amandanbreshears

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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