Sensitron and Douglas Tools manufacture and market power tools and accessories.Sensitron targets customers in the professional contractor market,while Douglas Tools focuses on home users and professionals.Both firms use the same cost flow assumption for valuing inventories and cost of goods sold.Selected financial data for the companies appears below.

Required:
1. Calculate the irventary turnover ratid far each firm far year 2010, 2009, 2008.
2. Supeest reasans far the hifferences in the Inventary turnever ratios far these twa firms.

Question

Sensitron and Douglas Tools manufacture and market power tools and accessories.Sensitron targets customers in the professional contractor market,while Douglas Tools focuses on home users and professionals.Both firms use the same cost flow assumption for valuing inventories and cost of goods sold.Selected financial data for the companies appears below.
  
Required:
 1. Calculate the irventary turnover ratid far each firm far year 2010, 2009, 2008.
2. Supeest reasans far the hifferences in the Inventary turnever ratios far these twa firms.

Quizplus · Accepted Answer

The Answer of Sensitron and Douglas Tools manufacture and market power tools and accessories.Sensitron targets customers in the professional contractor market,while Douglas Tools focuses on home users and professionals.Both firms use the same cost flow assumption for valuing inventories and cost of goods sold.Selected financial data for the companies appears below.
  
Required:
 1. Calculate the irventary turnover ratid far each firm far year 2010, 2009, 2008.
2. Supeest reasans far the hifferences in the Inventary turnever ratios far these twa firms.

Sensitron and Douglas Tools Manufacture and Market Power Tools and Accessories.Sensitron