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Finance: Effects of increase in inventory turns for Toys by

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.