1) Suppose the (inventory turnover ratio) ITR for a company is 4, but the accounts receivable ratio (ARR) is 0.25, how would you view the prospect of investing in this company versus a company that has an ITR of 2.5 but an ARR of 5?

2) Suppose a firm has an ITR of 2.8. If it runs its operations on borrowed capital of $250,000, and sells its product with a markup of 25%, what would be its annual revenue and annual return rate on investment of $250,000?

3) Suppose you have an ITR of 3.6. Your business defines the operating year to be comprising 320 days. What is the average time a piece of inventory takes to sell? 4) Suppose the above business has a ARR of 2.8. What is the average time needed for a credit sale to cash?