Baker mfg inc. wishes to compare its inventory turnover to those of industry​ leaders, who have turnover of about 13 times per year and 8​% of their assets invested in inventory. baker mfg. inc. net revenue ​$27 comma 500 cost of sales ​$21 comma 440 inventory ​$1 comma 230 total assets ​$16 comma 250 ​a) what is​ baker's inventory​ turnover? nothing times per year ​(round your response to two decimal​ places). ​b) what is​ baker's percent of assets committed to​ inventory? nothing​% ​(enter your response as a percentage rounded to two decimal​ places). ​c) how does​ baker's performance compare to the industry​ leaders? ▾ worse in line with industry better

a) Baker's inventory turnover is 17.43 times per year.

b) Baker's percent of assets committed to inventory is 8%.

c) Baker's performance is better than the industry leaders.

a. We use the following formula to calculate the Inventory Turnover Ratio (ITR):

b. We can calculate the percent of assets committed to inventory as

.

c. Baker has the same percentage of assets in inventory as the industry leaders. However, its inventory turnover ratio is higher than that of the industry benchmark.

A higher inventory turnover ratio is preferred and is considered a sign of better performance, all other things remaining constant. Hence we can say that Baker's performance is better than the industry leaders.

answer; the coefficient of determination;