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    Finance: Effects of increase in inventory turns for Toys by

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    See the attached file for the graphs included.

    Attached are simplified versions of the balance sheet and income statement. Use this information to answer the question below:

    A 15% increase in inventory turns would bring this ration to _____, suggesting _____in_____.

    A. 109 days; a deterioration; profitability

    B. 4.8 times; an improvement; efficiency

    C. 3.9 days; a deterioration; profitability

    D.3.9 times; an improvement; efficiency

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    Solution Preview

    The inventory turnover is cogs/average inventory:

    8.4 / 2.5 = ...

    Solution Summary

    A sentence explains why the response was selected.