Hubble Space Incorporated has the following data which includes inventory conversion period or ICP of the firms against which it benchmarks. The firm's new manager is looking into the company on how he could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories decrease? Assume a 365-day year. Cost of goods sold =P85,000; Inventory =P20,000; Inventory conversion period (ICP) =85.88; Benchmark inventory conversion period (ICP) =38.00 * O P 7,316 P11,151 P 9,032 P10,036 P 8,129
Hubble Space Incorporated has the following data which includes inventory conversion period or ICP of the firms against which it benchmarks. The firm's new manager is looking into the company on how he could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories decrease? Assume a 365-day year. Cost of goods sold =P85,000; Inventory =P20,000; Inventory conversion period (ICP) =85.88; Benchmark inventory conversion period (ICP) =38.00 * O P 7,316 P11,151 P 9,032 P10,036 P 8,129
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
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Problem 5MCQ: Pedee Companys inventory turnover in days is 80 days. Which of the following actions could help to...
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![Hubble Space Incorporated has the following data which includes
inventory conversion period or ICP of the firms against which it
benchmarks. The firm's new manager is looking into the company on how
he could reduce its inventory enough to reduce its ICP to the benchmarks'
average. If this were done, by how much would inventories decrease?
Assume a 365-day year. Cost of goods sold =P85,000; Inventory
=P20,000; Inventory conversion period (ICP) =85.88; Benchmark inventory
conversion period (ICP) =38.00 *
P 7,316
P11,151
P 9,032
P10,036
O P 8,129](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4c1c851-8210-4f69-9f5f-1a8bd3607fcc%2F54197ede-fc89-43b1-9e42-a4a0a374c890%2Fc2j41fu_processed.png&w=3840&q=75)
Transcribed Image Text:Hubble Space Incorporated has the following data which includes
inventory conversion period or ICP of the firms against which it
benchmarks. The firm's new manager is looking into the company on how
he could reduce its inventory enough to reduce its ICP to the benchmarks'
average. If this were done, by how much would inventories decrease?
Assume a 365-day year. Cost of goods sold =P85,000; Inventory
=P20,000; Inventory conversion period (ICP) =85.88; Benchmark inventory
conversion period (ICP) =38.00 *
P 7,316
P11,151
P 9,032
P10,036
O P 8,129
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