Question
The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level.
The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level. Assume that both the cost per unit and the selling price per unit also remained constant. This accomplishment will be reflected in the firm's financial ratios in which one of the following ways?
decrease in the inventory turnover rate | ||
decrease in the net working capital turnover rate | ||
no change in the fixed asset turnover rate | ||
decrease in the day's sales in inventory | ||
no change in the total asset turnover rate |
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