CBA 2 Financial Performance - Task 7 - Inventory holding days

This may seem like a simple question however, I can't get it!!

Task 7 on CBA 2 (AQ 2013)

Question is, work out inventory holding days for 2 scenarios, information given:

Scenario 1 Scenario 2
Sales Vol 120,000 150,000
Revenue 1,680,000 1,800,000
Gross Profit 600,000 450,000
Profit from ops 275,000 200,000
Net Assets 2,298,400 2,100,340
Inventory 147,950 167,500

I have already worked out:


Scenario 1 Scenario 2
Return on net assets 11.96 9.52
Sales price per unit 14 12
Full production cost per unit 9 9

Without COS I'm lost and I haven't got anyone else to ask so, any guidance would be appreciated!

Comments

  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    edited October 2016
    You can calculate the cost of sales.
    Revenue less gross profit = cost of sales

    By the look of your full production cost per unit, I think you have already worked this out.
    Sandy
    [email protected]
    www.sandyhood.com
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034
    Scenario 1
    Inventory £147,950
    Cost of Sales £1,080,000

    I reckon 50 days
    Sandy
    [email protected]
    www.sandyhood.com
    lrod86
  • klbookkeeping
    klbookkeeping Registered Posts: 37
    Yes 50 days
  • rpinsent
    rpinsent Registered Posts: 3
    Thank you so much Sandyhood - I wouldn't have been able to get it even though I do feel a bit silly now as, it's quite simple!! B)
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