If a Firm's Inventory Turnover Is 4 and Days Sales

question 22

True/False

If a firm's inventory turnover is 4 and days sales outstanding (average collection period)is 60, then it takes approximately five months for newly acquired inventory to generate cash.

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Definitions:

Alcoholics Anonymous

An international mutual aid fellowship whose primary purpose is to help alcoholics achieve and maintain sobriety.

Conformity

Adapting one's own behavior or beliefs to match those of other people or to fit into societal norms.

Social Loafing

The phenomenon wherein individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Responsibilities

Duties or tasks that an individual is expected or required to perform as part of a role, job, process, or relationship.