FWIW Bard's reply: To calculate the required inventory, we first need to calculate the annual sales. The company expects to turn its inventory 1.5 times per ye

FWIW Bard's reply: To calculate the required inventory, we first need to calculate the annual sales. The company expects to turn its inventory 1.5 times per year, and they want to achieve an annual revenue of $3,000,000. This means that they need to sell $3,000,000 / 1.5 = $2,000,000 worth of inventory per year. Now that we know the annual sales, we can calculate the required inventory. The company plans to buy used automobiles at auctions and then sell them at four times the purchase price. This means that the purchase price of each car is $1,000 and the sale price is $4,000. To sell $2,000,000 worth of inventory, they need to buy $2,000,000 / $4,000 = 500 cars. The required inventory is therefore $500 * $1,000 = $500,000. In other words, the company needs to have $500,000 worth of inventory on hand at all times in order to achieve its annual revenue goal.