What is the total inventory turnover rate for given period? What is the total Inventory Days of Sales for given period?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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BicycleBro is a retailer that sells bicycles. The company had been operating for 30 days (1 month). By the end of 1 month it wants to measure its performance in terms of Inventory turnover and Days of inventory. Below is the information that the company has collected from its warehouse and accounting department

Stock Count Sheet

Item code

Stock on hand

Stock count week (week number when employees counted the stock on hand)

100

30

week1

200

10

week1

100

10

week3

200

20

week3

Inventory valuation

Item code

Value per unit (in $)

100

1000

200

2000

Bicycles sold by end of month

Item code

Units sold

100

5

200

10

 

Given the information above find

  • What is the total inventory turnover rate for given period?
  • What is the total Inventory Days of Sales for given period?
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