Question

Ho Corporation reported sales, cost of sales, and inventory figures for 2012 and 2013 as follows (all dollars in thousands):

    

Sales		Cost of Goods Sold				Inventory
2012	$	100		$	85		$	27
2013		110			90			35

   

1.	What is the amount of inventory turnover for each year? (Round your answer to 2 decimal places.)

  

	Inventory turnover
2012
2013

   

2.	In which year did Ho Corporation manage its inventory most efficiently? (Use 365 days a year. Round your intermediate calculations to 2 decimal places.)

2012 2013

Answer 1

Answer: o calculation of amount of inventory for each year? Inventory Turnover = cost of goods sold / Average Inventory particulars 2012 T 2013 | cost of goods sold 1 $90 Average Inventory $35 Inventory Turnover valio 3.15 2.57 Inventory Turnover patio $85 1 $27 2019 2013 3.15 2.57 Times Times 2012 365 2) caleulalion of Ho corporation Manage its inventory most efficieney. particulars 2013 No. of days in a year 365 Inventory Turnover ralio 3.15 2.57 Average No.of shares to sellimuatel 115.90 142 :: Average No of shares to sell inventory in 2012 is 115.90 days and 2013 is 142 days. :: Ho corporation Manage its inventory most efficiency is 2012.