Williams & Sons last year reported sales of $16 million, cost of goods sold (COGS) of $12 and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the nearest dollar
Williams & Sons last year reported sales of $16 million, cost of goods sold (COGS) of...
Williams & Sons last year reported sales of $108 million, cost of goods sold (COGS) of $90 and an inventory turnover ratio of 5. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer to the...
Williams & Sons last year reported sales of $23 million, cost of goods sold (COGS) of $18 and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up?
Inventory Management Williams & Sons last year reported sales of $44 million, cost of goods sold (COGS) of $36 and an inventory turnover ratio of 4. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round your answer...
Problem 16-01 Inventory Management Williams & Sons last year reported sales of $23 million, cost of goods sold (COGS) of $18 and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm's inventory level and increase the firm's inventory turnover ratio to 6 while maintaining the same level of sales and COGS, how much cash will be freed up? Do not round intermediate calculations. Round...
Last year a company reported a sale to USD 8million and inventory turnover ratio of 4. Its is now optin a new inventory system is able to reduce the firms inventory level and increase the firms inventory turnover ratio to 6 while maintaining the same level of sales. How much cash will be freed up.
Sun Magic Corp. consistently sells $60 million of product sales (with a cost of goods sold of $40 million) each year. Sun's inventory ratio has been 4.0 for the past few years. A new VP of Operations believes that a new inventory control system will increase inventory turnover to 6.0 without impacting sales. If the new VP is correct, how much working capital will be freed up? a. It cannot be determined from the information provided. b. $2.0 million c....
20. Your firm's cost of goods sold (COGS) average $1,800,000 per month, and it keeps inventory equal to 55% of its monthly COGS on hand at all times. Using a 365-day year, what is its inventory conversion period? a. 11.7 days b. 13.0 days c. 14.4 days d. 15.2 days 18.2 days 30. Fairchild Garden Supply expects $550 million of sales this year, and it forecasts a 158 increase for next year. The CFO uses this equation to forecast inventory...
Edison Co, reported the following for the current year Net sales Cost of goods sold Net income Beginning balance of total assets Ending balance of total assets $90,000 $65,000 $23,400 $75,000 $81,000 Compute (a) profit margin and (b) return on total assets Complete this question by entering your answers in the tabs below. Profit Margin Ratio Return On Total Assets Compute the profit margin ratio. Choose Numerator: Profit Margin Ratio Choose Denominator - = Profit Margin Ratio Profit margin ratio...
A manufacturing company producing medical devices reported $50 million in sales over the last year. At the end of the same year, the company had $17 million worth of inventory of ready-to-ship devices. (Round your answer to 1 decimal place.) Assuming that units in inventory are valued (based on cost of goods sold) at $750 per unit and are sold for $2000 per unit, what is the company’s annual inventory turnover?
(Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits ÷ sales) of 26 percent and sales of $8.3 million last year. 70 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.4 million, its current liabilities equal $295,500, and it has $109,900 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $561,700, what is its average collection period? b. If Brenmar reduces its average collection period to...