Answer:
Weeks of supply = 4.16 weeks
Explanation:
given data
net income = $20 million
revenue = $60 million
cost of goods sold = $25 million
inventory = $2 million
property, plant, and equipment = $500,000
to find out
how many weeks of supply does the firm hold
solution
we know here that Weeks of supply will be express as
Weeks of supply = [tex]\frac{average inventory}{cost of goods sold}[/tex] × 52 weeks ....................................1
so put here value we get weeks of supply
Weeks of supply = [tex]\frac{2}{25}[/tex] × 52 weeks
Weeks of supply = 4.16 weeks
