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An analyst observes a decrease in a company's inventory turnover. Which of the following MOST LIKELY explains this trend? a. The company wrote off a
An analyst observes a decrease in a company's inventory turnover. Which of the following MOST LIKELY explains this trend? a. The company wrote off a large amount of obsolete inventory at the beginning of the year. b. The company mistakenly placed duplicate orders for inventory with suppliers. c. The company installed a new inventory management system. In FY 2017-18, Brown Corp. had average days of sales outstanding of 19 days. For the upcoming fiscal year, Brown wants to match the industry average of 15 days. Credit sales for FY 2017-18 were $300 million; Brown projects credit sales to increase to $390 million in the coming fiscal year. In order to decrease the collection period to Brown's goal, the change in average accounts receivable that must occur is CLOSEST TO: a. +0.41 million b. 0.41 million c. 1.42 million d. +1.42 million
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