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The company currently has the following ratios: Inventory turnover (2 times), Asset Turnover ratio (30%), Gross margin (20%).In an attempt to reduce their inventory levels
The company currently has the following ratios: Inventory turnover (2 times), Asset Turnover ratio (30%), Gross margin (20%).In an attempt to reduce their inventory levels near year end, the company offers a huge discount and makes a credit sales of $100,000 (COGS of this sale is $100,000). How does this transaction affect the ratios? Select one: O a. Increase inventory turnover, increase asset turnover and decrease gross margin b. Decrease inventory turnover, increase asset turnover and increase gross margin Oc. Increase inventory turnover, increase asset turnover and increase gross margin d. Decrease inventory turnover, decrease asset turnover and decrease gross margin e. Increase inventory turnover, decrease asset turnover and increase gross margin
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