The Corner Hardware Has Succeeded in Increasing the Amount of Goods

question 59

Multiple Choice

The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level.Assume that both the cost per unit and the selling price per unit also remained constant.This accomplishment will be reflected in the firm's financial ratios in which one of the following ways?

• A)decrease in the inventory turnover rate
• B)decrease in the net working capital turnover rate
• C)no change in the fixed asset turnover rate
• D)decrease in the day's sales in inventory
• E)no change in the total asset turnover rate

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Definitions:

Vein

A blood vessel carrying blood toward the heart after receiving it from a venule.

Dark Red Blood

Indicates oxygen-depleted blood, often associated with venous blood or certain conditions causing altered blood coloration.

Spurts

Sudden and rapid bursts of growth, energy, activity, or the flow of a liquid.

Postmortem Examination

A postmortem examination, also known as an autopsy, is a detailed medical examination of a body after death to determine the cause and manner of death and to evaluate any disease or injury that may be present.