Understanding the Data Table for Ratio Analysis

The question asks us to find the quarter with the minimum bought to sold ratio based on the provided data table. The table lists five items (A, B, C, D, E) and the number of items brought (B) and sold (S) for each item across four quarters (Q1, Q2, Q3, Q4).

To find the overall bought to sold ratio for a quarter, we first need to calculate the total number of items brought and the total number of items sold across all items for that specific quarter.

Calculating Total Items Bought and Sold per Quarter

Let's sum up the 'B' values (items brought) and 'S' values (items sold) for all items (A through E) in each quarter.

• Quarter 1 (Q1):
  • Total Bought (B): $300 + 270 + 280 + 320 + 325 = 1495$
  • Total Sold (S): $170 + 180 + 210 + 250 + 275 = 1085$
• Quarter 2 (Q2):
  • Total Bought (B): $400 + 280 + 350 + 340 + 370 = 1740$
  • Total Sold (S): $335 + 200 + 310 + 290 + 315 = 1450$
• Quarter 3 (Q3):
  • Total Bought (B): $370 + 350 + 250 + 280 + 320 = 1570$
  • Total Sold (S): $320 + 330 + 200 + 180 + 170 = 1200$
• Quarter 4 (Q4):
  • Total Bought (B): $410 + 380 + 250 + 280 + 265 = 1585$
  • Total Sold (S): $370 + 340 + 200 + 240 + 190 = 1340$

We can summarize these totals in a table:

Determining the Bought to Sold Ratio for Each Quarter

The bought to sold ratio for a quarter is calculated by dividing the total items bought by the total items sold for that quarter.

Ratio = $\frac{\text{Total Items Bought}}{\text{Total Items Sold}}$

• Quarter 1 (Q1) Ratio: $\frac{1495}{1085} \approx 1.3779$
• Quarter 2 (Q2) Ratio: $\frac{1740}{1450} = 1.2$
• Quarter 3 (Q3) Ratio: $\frac{1570}{1200} \approx 1.3083$
• Quarter 4 (Q4) Ratio: $\frac{1585}{1340} \approx 1.1828$

Identifying the Quarter with the Minimum Bought to Sold Ratio

Now we compare the calculated ratios for each quarter:

• Q1 Ratio: $\approx 1.3779$
• Q2 Ratio: $1.2$
• Q3 Ratio: $\approx 1.3083$
• Q4 Ratio: $\approx 1.1828$

Comparing these values, we can see that the ratio for Quarter 4 ($\approx 1.1828$) is the smallest among the four quarters.

Conclusion: Minimum Ratio Quarter

Based on the calculations, Quarter 4 has the minimum bought to sold ratio.

Revision Table: Key Concepts

Additional Information: Ratio Analysis in Business

Ratios like the bought to sold ratio are often used in business to understand inventory management, sales performance, and supply chain efficiency. A high bought to sold ratio might indicate overstocking or slow sales, while a low ratio could suggest efficient inventory turnover or potentially insufficient stock to meet demand, depending on context. Comparing ratios across different periods (like quarters) helps identify trends and performance changes over time. This type of data analysis is crucial for making informed business decisions regarding purchasing, stocking, and sales strategies.