1) Which of these would cause inventory turnover to increase the most?

Keeping the amount of inventory on hand constant, but decreasing sales.

Increasing the amount of inventory on hand.

Decreasing the amount of inventory on hand and increasing sales.

Keeping the amount of inventory on hand constant, but increasing sales.

2) How many units should be included in the year-end inventory of Entity D? 95 units owned by a dealer in another state that have been consigned to Entity D for quick sale. 400 units in the warehouse; 10 are not saleable due to storm damage. 20 units in transit to Entity D which were shipped F.O.B. destination.

505 units

400 units

390 units

410 units