Data on Shin Inc for 2011 Are Shown Below, Along

question 72

Multiple Choice

Data on Shin Inc for 2011 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories decline? Use a 365-day year.

• A) $ 7,316
• B) $ 8,129
• C) $ 9,032
• D) $10,036
• E) $11,151

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Definitions:

Limitations

The inherent restrictions or constraints that may impact the effectiveness, efficiency, or applicability of a process, study, or initiative.

DuPont Chart

A graphical representation used in financial analysis to display the components of the return on equity formula, helping to understand leverage, operational efficiency, and profitability.

Return on Investment

A measure of the profitability of an investment, calculated by dividing the net profit from the investment by the cost of the investment.

Lead Indicators

Metrics that precede an event and can be used to predict future trends or performance outcomes.