Define to the board of directors the meaning of the Inventory and Accounts Receivable Turnover ratios.

You are a graduate and is hired as a Management Consultant at a prominent Management Consulting Firm. Your first responsibility on the job is to review the financial statement of Tiffany & Company, Inc. and provide recommendations for efficiencies in operations to the Tiffany & Company, Inc Board of Directors. The Tiffany & Company, Inc 10-K information from the
DELIVERABLES
A. Please calculate the following financial ratios
• Inventory Turnover in time and days
• Accounts Receivable Turnover in time and days (assume 20% of net Revenue/Sales was Credit Sales). (20%)

B. Please prepare a 2 page paper on:
• Define to the board of directors the meaning of the Inventory and Accounts Receivable Turnover ratios. Why are you using them? What information are they providing? (20%)
• Explain to the Tiffany & Company, Inc. the Inventory and Accounts Receivable Turnover ratio analysis results from above. What is being communicated from the analysis? Please explain if the results are good or bad? (20%)
• Please provide two specific and realistic recommendations to Tiffany & Company, Inc. Board of Directors to improve efficiencies in its operations (one for the inventory turnover and the other for the accounts receivable turnover). (20%)

Please used the Time New Roman font, 12 font size, and double lined. Please, no plagiarism, and check for proper grammar before submission.

A. Calculations: (NOTE: PLEASE SHOW YOUR CALCULATIONS FOR FULL POINTS)
1. Inventory Turnover in Time = Cost of Goods Sold / Average Inventory (10%)

2. Inventory Turnover in Days = 365 / Inventory Turnover in Time (10%)

3. Accounts Receivable Turnover in Time = Credit Sales/Average Accounts Receivable (10%)

4. Accounts Receivable turnover in Days = 365 / Accounts Receivable Turnover in Time (10%)

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