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A company has an Inventory Turnover Period (ITP) of 60 days and a receivable Collection Period of 30 days. This company has a net profit
A company has an Inventory Turnover Period (ITP) of 60 days and a receivable Collection Period of 30 days. This company has a net profit rate of 20% (sells the goods for %20 more than its unit cost).
How much in percent will be the increase in its annual potential profitability if it decreases its ITP to 30 days?
A.
207,36%
B.
107,36%
C.
91,23%
D.
198,6%
E.
120%
F.
80%
G.
40%
H.
298,6%
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