Question

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a) What is Baker's inventory turnover? times per year (round your response to two decimal places). b) What is Baker's percentage of assets committed to inventory?

Answer 1

To calculate Baker's inventory turnover and the percentage of assets committed to inventory, we need two pieces of information: the cost of goods sold (COGS) and the average inventory.

Given that the inventory turnover ratio is defined as:

Inventory Turnover = COGS / Average Inventory

And the percentage of assets committed to inventory is defined as:

Percentage of Assets Committed to Inventory = (Average Inventory / Total Assets) * 100

Unfortunately, the specific values for COGS, average inventory, and total assets are not provided in the question. Without this information, I cannot perform the calculations to determine Baker's inventory turnover and the percentage of assets committed to inventory.

If you can provide the necessary data, I'd be happy to help you with the calculations.