Asked by
Sarah Timmons
on Nov 09, 2024Verified
In Scenario 8-2, after analyzing the inventory turnover ratio, you determined that ______.
A) Denny has a problem because this number is so high
B) Denny is turning his inventory over too much
C) Denny is not turning his inventory over enough to be profitable
D) Denny is keeping his inventory current, which is positive due to the nature of his business
Inventory Turnover
A measure of how many times a company’s inventory is sold and replaced over a period, indicating efficiency in inventory management.
- Examine financial documents and indices to gauge the performance of a business relative to industry norms.
- Comprehend the essentiality of administrating receivables and inventory to facilitate proper cash flow management.
Verified Answer
DP
Learning Objectives
- Examine financial documents and indices to gauge the performance of a business relative to industry norms.
- Comprehend the essentiality of administrating receivables and inventory to facilitate proper cash flow management.
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