The Sales of SportCheck Have Increased Recently and Inventory Has

question 93

Multiple Choice

The sales of SportCheck have increased recently and inventory has declined slightly. A financial analyst would expect to find that the:

• A) Inventory turnover has increased and the days' sales in inventory has decreased.
• B) Inventory turnover has decreased and the days' sales in inventory has decreased.
• C) Inventory turnover has decreased and the days' sales in inventory has increased.
• D) Inventory turnover has increased and the days' sales in inventory has increased.
• E) Quick ratio has decreased and the current ratio has increased.

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Definitions:

Interest Paid

The total amount of interest paid by a borrower to a lender over a particular period for the use of borrowed money.

Bonds Interest Payable

This represents the amount of interest expense that a company owes to its bond investors but has not yet paid.

Annual Bond Interest

The total interest that will be earned on a bond over the course of a year.

Face Value

The nominal or principal value of a financial instrument as stated by the issuer, typically used for bonds or currency notes.