Data on Liu Inc A) $7,316
B) $8,129
C) $9,032
D) $10,036
E) $11,151

question 113

Multiple Choice

Data on Liu Inc.for the most recent year 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. $\begin{array}{lr}\text { Cost of goods sold = } & \$ 85,000 \\\text { Inventory }= & \$ 20,000 \\\text { Inventory conversion period (ICP) }= & 85.88 \\\text { Benchmark inventory conversion period (ICP) }= & 38.00\end{array}$

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

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Definitions:

Civilization

In anthropology, societies in which large numbers of people live in cities, are socially stratified, and are governed by a ruling elite working through centrally organized political systems called states.

Private Property

The legal right to own, use, and dispose of land, goods, or intellectual properties individually, distinct from public or communal ownership.

Hydroponic Farming

A method of growing plants in a water-based, nutrient-rich solution without soil.

Subsistence

The basic means by which individuals or groups support themselves at a minimum level of subsistence, often involving self-sufficiency without significant trade or economic exchange.