BUSI 2113 UE8 Chetajeet 2018100046 copy.docx - Unit Exercise 8 Chetanjeet Kaur 2018100046 BUSI2113-20W-C-5E Yorkville University Submitted To Violet

BUSI 2113 UE8 Chetajeet 2018100046 copy.docx - Unit...

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Unit Exercise 8 Chetanjeet Kaur 2018100046 BUSI2113-20W-C-5E Yorkville University Submitted To: Violet Sutherland Ques 11.11: a. What is Baker’s inventory turnover? Inventory Turnover = Cost of Goods Sold / Inventory Investment =21,500 / 1,250 = 17.2 b. What is Baker’s percentage of assets committed to inventory? Percent Inventory = (Total Inventory Investment / Total Assets) x 100 = (1,250 / 16,600) x 100
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=7.53% c. How does Baker’s performance compare to the industry leaders? As the performance of industry is 0.47% which higher than Baker Mfg. Inc.’s is this indicates that Baker’s performance is lower compared to the industry standard performance. Ques 11.13: “The grocery industry has an annual inventory turnover of about 14 times. Organic Grocers, Inc., had a cost of goods sold last year of $10.5 million; its average inventory was $1.0 million. What was Organic Grocers’s inventory turnover, and how does that performance compares with that of the industry?’’ Inventory Turnover = Cost of goods sold / avg. inventory 10.5 / 1 = 10.5 “The performance of an industry can be compared by comparing the performance ratios with the industry standards. The ratio shows how many times a year inventory is
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