Solved: Is it possible for the inventory turnover to be too high, Finance Basics

+44 141 628 6080
[email protected]

Is it possible for the inventory turnover to be too high

A company that grants terms of n/45 on all sales has a yearly accounts receivable turnover, based on monthly averages, of 5. Is this a satisfactory turnover? Discuss. Why is it advantageous to have a high inventory turnover? Is it possible for the inventory turnover to be too high? Discuss. Is it possible to have a high inventory turnover and a high number of days' sales in inventory? Discuss.

Solution Preview :

Prepared by a verified Expert

Finance Basics: Is it possible for the inventory turnover to be too high

Reference No:- TGS0673857

Now Priced at $30 (50% Discount)

Recommended (95%)

Rated (4.7/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Finance Basics

Q : Offset the credit exposure

Bank A makes a USD 10 million five-year loan and wants to offset the credit exposure to the obligor. A five-year credit default swap (CDS) with the loan as the reference asset trades on the market at a swap premium of 50 basis points paid quarterl

Q : What is the trend in cash from operations

Objective: To analyze the financial report of nike Obtain an annual report from a corporation that is interesting to you. Using techniques you have learned in the previous weeks, respond to the following questions:

Q : The market price of sandals common stock

On June 30, the board of directors of Sandals, Inc., declares a 5-for-1 stock split on its 27,000, $3 par, common shares. The market price of Sandals common stock is $100 on June 30.

Q : What is the present value of the salvage value

Lamars discount rate is 12%. If the discount rate and the present value of an annuity of $1 at 12% for 8 years is 4.968 what is the present value of the salvage value?

Q : Is it possible for the inventory turnover to be too high

Is it possible for the inventory turnover to be too high? Discuss. Is it possible to have a high inventory turnover and a high number of days' sales in inventory? Discuss.

Q : How the production-volume variance might be indicated

Variable costing versus absorption costing. The Mavis Company uses an absorption-costing sys- tem based on standard costs.

Q : Find earnings per share in preceding year adjusted

There were no other changes in the amount of stock outstanding. What were the earnings per share in the preceding year, adjusted for comparison with the latest year?

Q : Prepare the entry to record payment of the note at maturity

Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other interest accrual entries have been made.

Q : What type of analysis is indicated by profitability analysis

What type of analysis is indicated by the following. Contribution margin analysis.

1959235

Questions
Asked

3,689

Active Tutors

1415118

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Solution Preview :

Prepared by a verified Expert

Finance Basics: Is it possible for the inventory turnover to be too high

Reference No:- TGS0673857

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Offset the credit exposure

Q : What is the trend in cash from operations

Q : The market price of sandals common stock

Q : What is the present value of the salvage value

Q : Is it possible for the inventory turnover to be too high

Q : How the production-volume variance might be indicated

Q : Find earnings per share in preceding year adjusted

Q : Prepare the entry to record payment of the note at maturity

Q : What type of analysis is indicated by profitability analysis

Is lifespan psychologists are unlikely to investigate

How we perceive objects in the real world

Discuss three ethical guidelines that are important

Problem regarding the america youth and social media

Describe the results, including any scores

Discussion about the nature versus nurture

How teenagers in an impoverished urban area spend their time

Solution Preview :

Prepared by a verified Expert

Finance Basics: Is it possible for the inventory turnover to be too high

Reference No:- TGS0673857

Recent Questions Asked Finance Basics

Q : Offset the credit exposure

Q : What is the trend in cash from operations

Q : The market price of sandals common stock

Q : What is the present value of the salvage value

Q : Is it possible for the inventory turnover to be too high

Q : How the production-volume variance might be indicated

Q : Find earnings per share in preceding year adjusted

Q : Prepare the entry to record payment of the note at maturity

Q : What type of analysis is indicated by profitability analysis

Asked Questions