Baker Mfg. Inc. wishes to compare its inventory turnover to those of industry leaders, who have turnover of about 13 times per year and 8% of their assets invested in inventory.
A) What is Baker's inventory turnover?
B) What is Baker's percent of assets committed to inventory?
Tabel
Arrow Distributing Corp.
Net Revenue $16,500
Cost of Sales $ 13,500
Inventory $ 1,000
Total Assets $8,600
Baker Mfg. Inc.
Net Revenue $27,500
Cost of Sales $21,500
Inventory $1,250
Total Assets $16,600