The following data are pulled from a recent Ehmke Manufacturing Co Inc’s annual report.
Assets
Raw material inventory $120,000
Work-in-process inventory $50,000
Finished goods inventory $300,000
Property, plant & equipment $500,000
Other assets $200,000
Total assets $1,170,000
Condensed Income Statement
Revenue $2,000,000
Cost of goods sold $600,000
Other expenses $1,000,000
Net income $400,000
Calculate:
a) Percent invested in inventory
b) Inventory turnover
c) Weeks of supply