Data on Liu Inc

question 109

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.

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

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Definitions:

Direct Marketing

A type of advertising strategy that delivers promotional messages directly to potential customers on an individual basis, often through mail, email, or phone.

Coupons

Documents that entitle the customers who carry them to a discount on a product.

Outdoor Advertising

Marketing and promotional activities that use outdoor spaces, such as billboards, transit ads, and digital displays, to convey messages to the public.

Short Exposure

A brief period of time during which consumers are exposed to a message, advertisement, or product.