Question 2

1. Tampico Enterprises inventory turnover was 8.2 in 2X10. After analyzing several similar, competing companies, Tampico Enterprises found that the average inventory turnover for those companies was 11.8. What should Tampico Enterprises consider doing?

   		Increase inventory by purchasing on credit
   		Increase inventory by purchasing with cash
   		Decrease inventory by increasing sales
   		Change the number of days Tampico Enterprises uses to calculate inventory turnover
   		Decrease inventory by dumping obsolete goods