Answer:
The investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios would be the following:
Accounts receivable is $190,000
Inventory is $95,000
Plant and equipment is $570,000
The Total would be of $855,000
Explanation:
According to the given data we have the following:
Global Services is considering a promotional campaign that will increase annual credit sales by $570,000.
Therefore, in order to calculate the the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios we would have to make the following calculations:
Accounts receivable=$570,000/3=$190,000
Inventory=$570,000/6=$95,000
Plant and equipment=570,000/1=$570,000
Therefore, the Total would be of $855,000
