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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
17.  Analyzing inventories over three years. The following information relates to the activities of Funtime, Inc., a manufacturer of toys (amounts in millions of euros):
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|
 |
2013 |
2012 |
2011 |
|
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
€5,970 |
€5,650 |
€5,179 |
|
Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
3,193 |
3,038 |
2,806 |
|
Average Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
406 |
380 |
415 |
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a.  Compute the inventory turnover for each year.
b.  Compute the average number of days that inventories are held each year.
c.   Compute the cost of goods sold to sales percentage for each year.
d.  How well has Funtime managed its inventories over the three years?
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