1.If a company's inventory turnover increases from 8 to 10, then its cash conversion cycle will also increase, i.e., get longer.

TRUE or False

2.Southeast Wood Products, Inc. reports sales of $20,000,000 and inventory of $4,000,000. Southeast's inventory possesses significant economies of scale. Therefore, if the firm's sales increase by 10%, Southeast's inventory will ________ and if Southeast's sales decrease by 10%, Southeast's inventory will ________.

		increase by more than 10%; increase by more than 10%
		decrease by more than 10%; decrease by more than 10%
		increase by more than 10%; decrease by less than 10%
		increase by less than 10%; decrease by less than 10%