Problem 9-11 A firm with sales of $480,000 has average inventory of $240,000. The industry average...

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Problem 9-11 A firm with sales of $480,000 has average inventory of $240,000. The industry average for inventory turnover is

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Answer 1

Answer #1

Inventory turnover = Sales / Average inventory

8 = 480000 / Average inventory

New inventory = 480000 / 8

= $ 60000

Reduction in inventory = Old inventory - New inventory

= 240000 - 60000

= $120000

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Answer 2

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Problem 9-11 A firm with sales of $480,000 has average inventory of $240,000. The industry average...

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Problem 9-11 A firm with sales of $480,000 has average inventory of $240,000. The industry average...

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