Topps Company Inventory

Topps Company Inventory Alanya McCandless ACC 281 Christine Errico December 11, 2010 Topps Company Inventory Topps Company has been in business concern for many years. They ar split in two sections confectionary and entertainment. They are doing some restructuring to improve their bottom line. In the following paragraphs a discussion on their gunstock turnover proportionality, how the management of the stemma is working and the cost flow method apply in their inventory. Inventory turnover ratio is the cost of sales separate by final stage inventory. There are other versions of this equation. total inventory may be used preferably of ending inventory to help compensate for seasonal sales. Sales instead of Cost of sales may withal be used in the equation. The variables will only change the factors slightly and will still give and accurate account. The turnover ratio is used to find the figure of times an inventory is turnover. This marrow the number of times the inventory is sold out and moldiness be replaced with new inventory. (Investopedia ULC, 2010) The higher this number the better polish off the company is. Holding high inventories raise signal cark for the company should the prices drop.

The company has made an investment that has a postcode rate of return if the inventory is not being sour over. Topps Company had a turnover ratio of 5.38 in 2006 and 5.74 in 2005. Average days to sell are obtained from using the number of days in a year 365 divided by the turnover ratio. Average days to sell may also be referred to as Age of inventory. This is the number of days it takes a company to sell a product that is currently in inventory. (Investopedia ULC, 2010) This is another way to decide if products are sitting also long in inventory. There may be a case of ineffective buying or other issues that can cause long or excessive Average days to sell. The Average day to sell or age of inventory for 2006 was 67.84 and 63.59 for 2005. This means in 2006 it took 68... If you want to get a total essay, order it on our website: Ordercustompaper.com

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