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The rm s investment in inventory also has a direct effect on its working capital. Excess inventory means that funds are tied up in inventory that could be used more pro tably elsewhere. Also, additional costs are being incurred for storage, insurance, and property taxes, not to mention the danger of a price decline and obsolescence of goods. Whenever any consideration is given to pricing and pro t planning, it is important to consider the merchandise inventory turnover. This is the number of times the average inventory is sold during a year. The turnover shows how quickly the invento ry is moving. Assuming that the company maintains a reasonable inventory for its type of business, a high turnover rate indicates that only a relatively small pro t need be added to the price of each item to maintain a high pro t overall. Turnover is also a good indication of the amount of working cap ital that needs to be tied up in inventory at one time. Merchandise inventory turnover can be computed from the cost of goods sold section of the income statement. It should be noted, however, that the turnover is an annual rate and should not be computed from in terim nancial statements. Merchandise inventory turnover is calculat ed by taking the cost of goods sold divided by the average merchandise



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1 2; 9 5 3 1

(d) 7; (e) 5; (f) 0; (g) 3; (h) 5; (i) 4; (j)

2 3;

(k) 1; (l) 2; (m) 5; (n) 6;





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25. (a) 72 ; (b) 18 ; (c) 68 ; (d) 22 ; (e) 45 ; (f) 0 26. (a) 0.0875; (b) 0.3057; (c) 0.3640; (d) 0.7002; (e) 1; (f) 3.2709; (g) 11.430 27. (a) 0 ; (b) 25 ; (c) 45 ; (d) 55 ; (e) 7 ; (f) 27 ; (g) 37 ; (h) 53 ; (i) 66 28. (a) BC, BD, AD, AE; (b) BF, CF, DE; (c) AF, CD; (d) AB, EF 29. (a) 0; (b) no slope; (c) 5; (d) 5; (e) 0.5; (f) 0.0005 30. (a) 0; (b) no slope; (c) no slope; (d) 0; (e) 5; (f) 1; (g) 2 31. (a) 3; (b) 7; (c) 1; (d) 6 2 3 32. (a) 2; (b) 1; (c) 34. (a) 35. (a) 36. (a)

3 2; 1 2; 3 2; 1 3;

2 5;

inventory. The average merchandise inventory is de ned as beginning in ventory plus ending inventory divided in half.

(e) 10; (f) 1; (g) 4; (h) 13; (i) no slope; (j) 0

33. (a) 0; (b) 2; (c) 3; (d) 1 (b) 3; (c) (b) 1; (c) 6 4

5 2 3 2

(b) 1; (c) 2; (d) 1

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42. (a) line having y-intercept 5, slope 2; (b) line passing through (2, 3), slope 4; 5 (c) line passing through ( 2, 3), slope 4; (d) line passing through origin, slope 1; 2 1 (e) line having y-intercept 7, slope 1; (f) line passing through origin, slope 3 43. (a) y 44. (a) y (f) y 4x; (b) y 2x; (c) y

8.11 Any two of these: child, parent, self, ancestor, ancestor-or-self, attribute, descendant, descendant-or-self, following, following-sibling, namespace, preceding, preceding-sibling 8.12 c 8.13 d 8.14 True. XPointer uses the system of axes, predicates, and functions. 8.15 Yes, XPointer uses the same location path characters as XPath.

3 2x

Note!

1 3x

2 5x

0 4x 3;

4 1 7

1 2x

4 3;

51. (a) 10; (b) 10; (c) 20; (d) 20; (e) 7; (f) 25 52. (a) 16; (b) 12; (c) 20; (d) 24 53. (a) 10; (b) 12; (c) 22 54. (a) 5; (b) 13; (c) 72 55. (a) 6; (b) 10; (c) 1.2 56. (a) 15; (b) 49; (c) 53 57. (a) 30; (b) 49; (c) 88; (d) 24; (e) 16; (f) 18

In a retail business, such as a department store, turnover may effectively be computed either by de partments or by classes of items.

13

1. (a) 2. (a) 3. (a) 5. (a) ; (b) ; (b) ; (b) ; (b) ; (c) ; (c) ; (c) ; (c) ; (d) ; (d) ; (d) ; (d) ; (e) ; (f) ; (e) ; (f)

4. (a) more; (b) less 6. (c), (d), and (e) 7. (a) 5 to 7; (b) 6 to 10; (c) 4 to 10; (d) 3 to 9; (e) 2 to 8; ( f ) 1 to 13 8. (a) jB, jA, jC; (b) DF, EF, DE; (c) j3, j2, j1 9. (a) mjBAC mjACD; (b) AB BC 10. (a) BC, AB, AC; (b) jBOC, jAOB, jAOC; (c) AD, AB > CD, BC; (d) OG, OH, OJ

14

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