Weeks of supply and inventory turnover


Problem: Following data were collected for a retailer:

Cost of goods sold $ 3,500,000
Gross profit $ 700,000
Operating costs $ 500,000
Operating profit $ 200,000
Total inventory $ 1,200,000
Fixed asset $ 750,000
Long-term debt $ 300,000

Assuming 52 business weeks per year, express total inventory as

a. weeks of supply.

b. inventory turnover.

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Microeconomics: Weeks of supply and inventory turnover
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