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:

Water Scarcity

The condition where the availability of water resources is insufficient to meet the demands of a region's population.

Dessication

the process of drying out or dehydrating, often leading to the death of plants and animals in an ecosystem.

Deforestation

The large-scale removal of trees from forests or jungles, often to clear land for agricultural, residential or commercial development.

Overgrazing

The depletion of vegetation due to continuous feeding by an excessive number of grazing animals, leading to land degradation.