#YOUTUBE FINALE INVENTORY BLUETOOTH#

Therefore, you need to advise whether they are fulfilling the bank condition. has provided the below information for the past four years. One of the conditions required to be fulfilled by them is their inventory turnover should be greater than 5 for the past three years. VDFC bank has agreed to provide a loan to JBL Ltd.

#YOUTUBE FINALE INVENTORY BLUETOOTH#

JBL Ltd., whose business sells Bluetooth speakers and other electronic devices, is working out loan proposals since they want to boost their sales and lack funds to expand. But one should also consider other various factors before coming to any conclusion.

Further, the turnover ratio is quite close, and therefore prima facie, it seems that both the companies might be involved in an internal agreement. The ratio of sales and average inventory appears to be similar. can be done as follows: вЂ“Д¬alculation of inventory turnover for PQR Ltd. We can use a basic formula to calculate the inventory ratio, which is sales divided by average inventory.Д¬alculation of inventory ratio for ABC Ltd. In another place, the other dominates while the former does not.Д«elow are the recent sales and inventory data available you must calculate the turnover ratio and find whether any truth exists in the law tribunalвЂ™s statement. The customer and the law tribunal feel that they fool the customer and share the areas where one dominates, and the other does not. However, they have recently been questioned by the competition law tribunal for their intensive pricing. compete and target their customers to choose their brand and avoid the other.

In the final step, we will divide the cost of goods sold by the average inventory

It is equal to the previous accounting period's closing stock, valued in accordance with appropriate accounting standards based on the nature of the business. Secondly, average inventory can be calculated by dividing ( opening stock Opening Stock Opening Stock is the initial quantity of goods held by an organization during the start of any financial year or accounting period. Raw materials, work in progress, and final goods are all included on a broad level. It may include products getting processed or are produced but not sold. The formula for the cost of goods sold =Opening stock + Purchases вЂ“ Closing stock Closing Stock Closing stock or inventory is the amount that a company still has on its hand at the end of a financial period. The formula for calculating the inventory ratio is the cost of goods sold divided by average inventory.ДЇirstly, we will calculate the cost of goods sold. In addition, they have asked you to calculate the inventory ratio. In 2014, it went down to 4 times which clearly shows that their inventory movement relative to sales has been halved, and it is a clear sign of slow growth and intense competition from Reliance Jewelers. read more for 2013 can be done as follows:вЂ“Д¬alculation of Inventory Ratio for 2014 can be done as follows: вЂ“ДЄnalysis:В We can see that in 2013 the ratio was close to 8 times. Higher ratio indicates that the companyвЂ™s product is in high demand and sells quickly, resulting in lower inventory management costs and more earnings. In certain cases, sales are used instead of the cost of goods sold, which would unnecessarily distort the figure since sales include the markup.Д¬alculation of Inventory Turnover Calculation Of Inventory Turnover Inventory Turnover Ratio measures how fast the company replaces a current batch of inventories and transforms them into sales. It helps the management to understand the inventory that a business needs to hold during its daily course of business. Read moreВ by average inventory Average Inventory Average Inventory is the mean of opening and closing inventory of a particular period. However, it excludes all the indirect expenses incurred by the company. It can be calculated by dividing the cost of goods sold Cost Of Goods Sold The Cost of Goods Sold (COGS) is the cumulative total of direct costs incurred for the goods or services sold, including direct expenses like raw material, direct labour cost and other direct costs. The same is calculated by dividing the average inventory from the total cost of goods sold.

The inventory ratio helps the company know how many times a certain company has to replace or sell the stock within a time frame. The inventory ratio comes under the activity ratio.

Youtube finale inventory