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Review the statements below and select the ones that are correct regarding the days' sales in inventory ratio. ( Check all that apply. ) Multiple
Review the statements below and select the ones that are correct regarding the days' sales in inventory ratio. Check all that apply.
Multiple select question.
The ratio reveals how much inventory is available in terms of the number of days' sales.
The ratio estimates how many days it will take to convert inventory into accounts receivable or cash.
The ratio is useful in evaluating how quickly inventory is being sold.
The ratio measures what percentage of profit the company is making for every dollar of inventory it sells.
The ratio is often viewed as a measure of the buffer against outofstock inventory.
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