A company’s Cost of Goods Sold (COGS) for the 1st quarter of 2017 was $1,500,000. On January 1,2017 the company held $425,000 in inventory and on March 31 2017 it held $575,000.
1. What is the companies Average Inventory Investment for the 1st quarter of 2017?
2. How many times did the company turn its inventory in the 1st quarter of 2017?
Assume that quarterly COGS increased $250,000 every quarter of 2017 (For example 2nd QTR COGS were 1,750,000) and the company increased inventory holdings by $150,000 every quarter (Qtr 1 Ending Inventory = $575,000; Qtr 2 Ending Inventory = $725,000 etc.)
3. What were the company's inventory turns in quarters 2, 3, & 4?
4. What was the companies annual inventory turns for 2017?