Topps

TOPPS COMPANYS ANNUAL REPORT The Topps Company has been in handicraft for many years. In 2006 the union restructured the business to pore on operating profit net of direct operating cost rather than contributed margin at our two business units, confectionery and fun (Edmonds, Olds, et al.., 2010, Pg. 615). The Topps Company products include, but are not re attempt to, manduction gum, entertainment, and candy. This paper will discuss Topps storeing turnover analogy and add up solar age to care strain for 2006 and 2005, if the companys management of inventory is force backting split up or worse, and the constitute flow method that Topps use to measure for their inventory. First, in come in to determine the turnover balance and the average days, the equation must(prenominal) be discussed. The first flavor in calculating the average figure of speech of days it go throughs to sell inventory is to compute the inventory turnover, as follows: ( Cost of g oods interchange/ Inventory). The result of this computation is the twist of times the balance in the Inventory account is morose over (sold) each year. To more(prenominal) than easily interpret the inventory turnover ratio, analysts often take a further step and determine the average number of days to sell inventory (also called the average days in inventory), computed as (365/ Inventory turnover) (Edmonds, Olds, et al.., 2010, Pg.

169). The higher(prenominal) the amount is better for the company. For 2006 this would be $198,054/$36,781 and for 2005 this would be $189,200/$32,936. In 2006, Topps company had a turnover ratio of 5.38, compared to 5! .74 in 2005. The average day to sell the inventory for 2006 was 67.84 and 63.59 for 2005. With these statistics it took the Topps Company well-nigh four more days to sell their products in 2006 compared to 2005. This ripe proves that Topps had a more productive year in 2005 compared to 2006. jibe to the number of days and the products that were sold in both years. It would be to say the least(prenominal) that the companys management of inventory is...If you postulate to get a full essay, order it on our website: BestEssayCheap.com

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