In Comparison of 2014 to 2013 Performance,Weir Company's Inventory Turnover

question 24

Essay

In comparison of 2014 to 2013 performance,Weir Company's inventory turnover decreased substantially,although sales and inventory amounts were essentially unchanged.
Required:
Which of the following statements best explains the decreased inventory turnover ratio? Explain your answer choice.
a.Cost of goods sold increased.
b.Gross profit percentage increased.
c.Accounts receivable turnover decreased.
d.Total asset turnover decreased.

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Definitions:

Golden Age

A period of great happiness, prosperity, and achievement, often idealized in historical contexts or specific fields.

Fiscal Policy

The use of government spending and taxation to influence the economy, including policies aimed at reducing unemployment, controlling inflation, and fostering economic growth.

Election Year

A year in which a formal decision-making process is conducted through which citizens vote to choose public officials or to decide on public policy issues.

Government Purchases

Government purchases comprise spending by government bodies on goods and services that contribute directly to the economy's aggregate demand.