Data on Liu Inc A)$7,316
B)$8,129
C)$9,032
D)$10,036
E)$11,151

question 29

Multiple Choice

Data on Liu Inc.for the most recent year are shown below,along with the inventory conversion period (ICP) of the firms against which it benchmarks.The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average.If this were done,by how much would inventories decline? Use a 365-day year. $$\begin{array} { l r } \text { Cost of goods sold } = & \$ 85,000 \\\text { Inventory } = & \$ 20,000 \\\text { Inventory conversion period (ICP) } = & 85.88 \\\text { Benchmark inventory conversion period } ( \text { ICP } ) = & 38.00\end{array}$$

• A)$7,316
• B)$8,129
• C)$9,032
• D)$10,036
• E)$11,151

---

Definitions:

Connective

A logical operator that links propositions in compound sentences, such as "and," "or," "not."

Clause

A part of a sentence that contains its own subject and predicate, which can either stand alone as a sentence or be part of a larger sentence.

Proposition

A declarative statement that can either be true or false but not both, used as the basic building block of logic and argumentation.

Relative Clause

A part of a sentence that modifies a noun and begins with a relative pronoun, like 'who', 'which', or 'that'.