A firm is planning for next year and has developed the following information. What inventory balance should be included in next year's plan if management intends to increase inventory turnover by two turns in the coming year? Calculate using ending balances and the COGS formulation of inventory turnover.
A)$1.74M
B)$1.90M
C)$1.30M
D)$1.24M

Question

A firm is planning for next year and has developed the following information.  What inventory balance should be included in next year's plan if management intends to increase inventory turnover by two turns in the coming year? Calculate using ending balances and the COGS formulation of inventory turnover.
A)$1.74M 
B)$1.90M 
C)$1.30M 
D)$1.24M

Quizplus · Accepted Answer

The Answer of A firm is planning for next year and has developed the following information.  What inventory balance should be included in next year's plan if management intends to increase inventory turnover by two turns in the coming year? Calculate using ending balances and the COGS formulation of inventory turnover.
A)$1.74M 
B)$1.90M 
C)$1.30M 
D)$1.24M

A Firm Is Planning for Next Year and Has Developed