Sandy Shores, Inc From 2016 to 2017, the Company's Management of Inventory Is

question 56

Multiple Choice

Sandy Shores, Inc.reported the following amounts in its financial statements: $\begin{array}{lrr} & \underline{2017} & \underline{2016} \\\text { Average merchandise inventory } & \$ 200,000 & \$ 120,000 \\\text { Cost of goods sold } & 4,000,000 & 3,000,000\end{array}$ From 2016 to 2017, the company's management of inventory is

• A) declining, because the number of days' sales in inventory is getting larger.
• B) increasing, because the number of days' sales in inventory is getting larger.
• C) declining, because the number of days' sales in inventory is getting smaller.
• D) increasing, because the number of days' sales in inventory is getting smaller.

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Definitions:

Cause

The reason or motive behind an action or situation, often examined in legal contexts to establish causality or justification.

Disparate Impact

A theory in employment law where practices may be considered discriminatory if they have a disproportionate adverse effect on members of a minority group, even if unintentional.

Civil Rights Act

A landmark piece of legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin.

Business Necessity

A justification for implementing certain policies or actions as essential for the operation of a business.