Question

Happy Valley Homecare Suppliers, Incorporated (HVHS), had $17.6 million in sales in 2010. Its cost of goods sold was $7.04 million, and its average inventory balance was $1.99 million a. Calculate the average number of days inventory outstanding ratios for HVHS b. The average number of inventory days in the industry is 73 days. By how much must HVHS reduce its investment in inventory to improve its inventory days to meet the industry? (Hint Use a 365-day year.) a. Calculate the number of days inventory outstanding ratios for HVHS The number of inventory days outstanding is days. (Round to two derical places.) b. The average number of inventory days in the industry is 73 days. By how much must HVHS reduce its investment in inventory to improve its inventory days to meet the industry? To match the industry average number of inventory days. HVHS would reduce its inventory by 5 million (Round to three decimal place) Enter your answer in each of the answer boxe

Answer 1

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ACCOUNTS latest - Microsoft Excel (Product Activation Failed) View Add-Ins File Home Insert Page Layout Formulas Data Review - 2x % Cut Σ AutoSum : A Dr General Wrap Text Merge & Center 8.9 Insert Delete Format $ - % Number Conditional Format Formatting as Table Styles Cell Styles Fill 2 Clear -11AA = = = U - D A Font fix ERE S Sort & Filter Editing Find & Select Alignment Calibri E Copy Paste Format Painter B I Clipboard EU202 - EP EQ 186 Cells ES ET EU EV EW EX EY E Z FA FB FC FD FEES 187 188 189 190 number of days in inventory = 365 days x average inventory/ cost of goods sold number of days in inventory = 365 x 1.99/7.04 number of days in inventory = 103.17 191 industry average = 73 days inventory to be maintained number of days in inventory = 365 days x average inventory/ cost of goods sold 73 = 365 x average inventory /7.04 average inventory = 73 x 7.04/365 average inventory = 1.408 192 193 194 195 196 197 198 199 200 201 so inventory should be reduced by = 0.582 [1.99 - 1.408] 202 203 204 FIFO budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET dupont CASH BUDGET ferences: R46 DIFF ANALYSIS BO ovel 130% Rea _ 0 + Ha é o . DAS W 2x RALIS DOW9 ..* 4 40 ENG 04:12 14-11-2019