How Would You Interpret an Inventory Turnover Ratio of 10

question 85

Multiple Choice

How would you interpret an inventory turnover ratio of 10.7?

• A)it takes 50 days on average to collect receivables.
• B)inventory is converted into sales every 50 days.
• C)the firm has sufficient inventories to maintain sales for 34.1 days.
• D)assets are converted into sales every 50 days.

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Definitions:

Inspirational Qualities

Traits or characteristics that motivate and uplift others, often seen in effective leaders.

Motivation

The internal drive or external stimuli that prompt individuals to act or behave in a certain manner towards achieving specific goals.

Desire For Recognition

The human motivation to be acknowledged and valued by others for one's efforts or achievements.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or organization.