You are given the following information regarding sales and inventory levels over time for your firm: Year Inventory Sales 2019 $7,869 $12,502 2020 $7,297 $13,456 2021 $9,263 $17,845 2022 $7,135 $15,326 2023 $7,749 $14,464 Given this information, determine the level of safety stocks that the firm holds. $1,727 $3,755 O $1,268 $2,531 O $3,131

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 16PB: Use the following information relating to Medinas Company to calculate the inventory turnover ratio,...
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You are given the following information regarding sales and inventory levels over time for
your firm:
Year
Inventory
Sales
2019
$7,869
$12,502
2020
$7,297
$13,456
2021
$9,263
$17,845
2022
$7,135
$15,326
2023
$7,749
$14,464
Given this information, determine the level of safety stocks that the firm holds.
$1,727
$3,755
O $1,268
$2,531
O $3,131
Transcribed Image Text:You are given the following information regarding sales and inventory levels over time for your firm: Year Inventory Sales 2019 $7,869 $12,502 2020 $7,297 $13,456 2021 $9,263 $17,845 2022 $7,135 $15,326 2023 $7,749 $14,464 Given this information, determine the level of safety stocks that the firm holds. $1,727 $3,755 O $1,268 $2,531 O $3,131
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