Question
In the most recent year Watson Corporation had an inventory turnover ratio of 3.1. The company's managers expect to improve the inventory turnover ratio by
In the most recent year Watson Corporation had an inventory turnover ratio of 3.1. The company's managers expect to improve the inventory turnover ratio by 10% next year. If the company currently has $10 million of inventory, then what is the expected impact of the change on the company's inventory balance if its cost of goods sold stays relatively constant?
| a. | $1.11 million use of funds | |
| b. | $0.91 million use of funds | |
| c. | $1.11 million source of funds | |
| d. | $0.91 million source of funds |
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Probability For Risk Management
Authors: Matthew J. Hassett, Donald G. Stewart
2nd Edition
156698548X, 978-1566985482
