Data on Shin Inc for 2013 Are Shown Below, Along

question 21

Multiple Choice

Data on Shin Inc for 2013 are shown below, along with the inventory conversion period (ICP) of the firms against w it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP benchmarks' average. If this were done, by how much would inventories decline? Use a 365-day year.
Cost of goods sold =
$85,000
Inventory =
$20,000
Inventory conversion period (ICP) =
85) 88
Benchmark inventory conversion period (ICP) =
38) 00

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

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Definitions:

Endotherms

Endotherms are organisms that maintain their body temperature through internal metabolic processes, regardless of external environmental temperatures.

Physiological Mechanisms

The processes and functions of living organisms or their parts, including physical and chemical processes that contribute to vitality.

Body Temperature

The measure of the warmth or coldness of a body, typically maintained within a range that allows the organism's physiological processes to function efficiently.

Ectotherms

Organisms that regulate their body temperature through external sources, rather than generating much heat internally.