MARKETING II
STOCK TURNOVER AND OPEN TO BUY

For the following problems, calculate the open to buy and stock turnover. Make sure to show your work in order to get full credit.

1. Using the following information for the Furniture Shoppe, determine the average inventory and the annual  stock turnover rate.

Unit sales: 138 bedroom sets
Sum of the 12 monthly beginning inventories: 502 bedroom sets
Ending inventory: 96 bedroom set s

Average inventory (units)

Stock turnover rate (units)

2. Fun-n-Sun Toy Company sold 52 gym sets during the month of June. The average inventory of gym sets maintained in stock was 13. Determine the stock turnover rate for the month of June.
Stock turnover rate:

3. United Materials Manufacturing had annual sales of $8,728,330 and an average inventory of $3,357,050. What is the annual stock turnover rate for this business?
Stock turnover rate:

4. Prescott Discount Department Store had annual sales of $224,800 and an average inventory of $48,800. What is the annual stock turnover rate for this business?
Stock turnover rate:

5 . Boulevard Meats had annual sales of $69,785 and an average inventory of $16,420. W h at is the annual stock turnover rate for this business?
Stock turnover rate:

6. Using the following information for the Box Board Packaging Company, calculate the average inventory and the annual stock turnover rate.

Net sales: $65,500
Sum of the 12 Monthly Beginning Inventories: $174,600
Ending inventory: $14,620

Average inventory  (dollars)

Stock Turnover Rate

7. The estimated sales for the Harper Lawn and Garden Supply Company are $82,350, estimated EOM stock is $66,750, estimated markdowns are $1,250, estimated BOM stock is $54,800, and merchandise on order for the month is $4,800. Determine the open to buy.

8. Given the following information, determine the open to buy for each line: