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Lets say CU Industries reports that (1) the inventory turnover ratio = 3x (Sales/Inventory) while the industry average is 4. CUI wants to improve that
Lets say CU Industries reports that (1) the inventory turnover ratio = 3x (Sales/Inventory) while the industry average is 4. CUI wants to improve that ratio to 4 and they say that they can do it without affecting sales or the profit margin or other asset turnover ratios. Demand for their products is high and growing. They think that sales can grow 20% if they can get external funding. How much external funding will they need for an expected 20% growth rate (use the AFN formula)
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