Homework SourseHigher inventory turnover suggests A the companys inventory
Higher inventory turnover suggests
A the company’s inventory is more liquid
B the company’s inventory is somewhat obsolete
C the company has a higher inventory balance
D the company’s sales are higher
Higher inventory turnover suggests
A the company’s inventory is more liquid
B the company’s inventory is somewhat obsolete
C the company has a higher inventory balance
D the company’s sales are higher
A the company’s inventory is more liquid
B the company’s inventory is somewhat obsolete
C the company has a higher inventory balance
D the company’s sales are higher
Solution
Inventory Turnover = Inventory/(Average COGS/2)
Higher inventory means more sales and it means it sells the inventories better.
Option d is correct
Other options are not correct.
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