Baker management (see table 11.9) wishes to compare its inventory turnover of about 13 times per year and 8 % of their assets invested in inventory.
Baker
Net revenue 27,500
Cost of sales 21,500
Inventory 1,250
Total assets 16,600
Arrow dist corp
Net revenue 16,500
Cost of sales 13,500
Inventory 1,000
Total assets 8,600
A. What is baker's inventory turnover?
B. What is baker's percent of assets committed to inventory?
C. How does Baker's performance compare to the industry leaders?