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QUESTION

If a firm's sales are $1,500,000 and it costs 9 percent to carry current assets, what is the potential savings if management can increase inventory

If a firm's sales are $1,500,000 and it costs 9 percent to carry current assets, what is the potential savings if management can increase inventory turnover from 3 to 4 times a year and increase receivables turnover from 4.5 to 6 times a year? Please show all work.

Ans Particulars a Sales b Inventory Turnover c Inventory Level(a/b) d Receivable Turnover e ( Amount in $)PresentProposed1500000 1500000 3 4 500000 375000 4.5 6 Receivables(a/d) 333333.3...
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