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Baker Mfg Inc. wishes to compare its inventory turnover to those of industry? le

ID: 326488 • Letter: B

Question

Baker Mfg Inc. wishes to compare its inventory turnover to those of industry? leaders, who have turnover of about

1313

times per year and

88?%

of their assets invested in inventory.

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Baker Mfg. Inc.

Net Revenue

?$27,500

Cost of sales

?$19,820

Inventory

?$1,300

Total assets

?$16,570

?a) What is? Baker's inventory? turnover?

nothing

times per year ?(round your response to two decimal? places).

Baker Mfg. Inc.

Net Revenue

?$27,500

Cost of sales

?$19,820

Inventory

?$1,300

Total assets

?$16,570

Explanation / Answer

Baker Mfg. Inc.

Net Revenue =

?$27,500

Cost of sales =

?$19,820

Inventory =

?$1,300

Total assets =

?$16,570

Inventory Turnover Ratio = (Cost of goods sold)/(Average Inventory) =19820 / 1300 = 15.24 times per year

Baker Mfg. Inc.

Net Revenue =

?$27,500

Cost of sales =

?$19,820

Inventory =

?$1,300

Total assets =

?$16,570

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