The sales forecast and various forms of operating and financial data are the key outputs of the short-run (operating) financial planning

The sales forecast and various forms of operating and financial data are the key outputs of the short-run (operating) financial planning. True False

Wilkins Manufacturing has sales of

Wilkins Manufacturing has sales of

$3.6

million and a gross profit margin of

43%.

Its ​end-of-quarter inventories​ are:

Quarter	Inventory
1	$395,000
2	790,000
3	1,201,000
4	203,000

a. Find the average quarterly inventory and use it to calculate the​ firm's inventory turnover and the average age of inventory. ​ (Assume a​ 365-day year.)

b. Assuming that the company is in an industry with an average inventory turnover of

1.71.7​,

how would you evaluate the activity of​ Wilkins' inventory?

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