If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, i

Question

3 years ago

5

If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, i

ts inventory turnover ratio will decrease. b. A reduction in the inventory turnover ratio will generally lead to an increase in the ROE. c. If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase. d. A reduction in inventories held would have no effect on the current ratio. e. An increase in inventories would have no effect on the current ratio.

Business

1 answer:

julsineya [31] · Answer 1 · 2022-03-31T01:22:40+03:00

julsineya [31]3 years ago

6 0

Answer:

D

Explanation:

If a firm increases its sales and cost of goods sold while holding its inventories constant, then, other things held constant, its inventory turnover ratio will increase.