Presented Below Are Selected Data from the Financial Statements of Wave

Presented below are selected data from the financial statements of Wave Company for 2019,2018,and 2017.
​
$\begin{array}{lrrr}&2019&2018&2017\\\text { Total assets } & \$ 1,205,000 & \$ 952,000 & \$ 945,000 \\\text { Cost of goods sold } & 360,000 & 420,000 & 440,000 \\\text { Inventory } & 56,000 & 64,000 & 53,000 \\\text { Net income } & 65,000 & 25,000 & 16,000\end{array}$ ​
A) Calculate Wave's inventory tumover ratio for 2019 and 2018 .
B) How many days would it take to sell the entire inventory at December 31,2019? At December 31,2018? Assume 360 days in a year.
C) What problems do you see in the company's inventory management?

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free