A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in:

Related MCQs

• Lei-Feng, Inc.'s $100 par value preferred stock just paid its $10 per share annual dividend. The preferred stock has a current market price of $96 a share. The firm's marginal tax rate (combined federal and state) is 40 percent, and the firm plans to maintain its current capital structure relationship into the future. The component cost of preferred stock to Lei-Feng, Inc. would be closest to .
• 80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
• Inventory Turnover measures the relationship of inventory with:
• A firm's operating cycle is equal to its inventory turnover in days (ITD)
• A firm is said to be financially unlevered firm if the firm has ……….
• Cost of goods sold is Rs. 8000 and gross margin is Rs. 5000 then revenue will be
• Gross margin is added to cost of sold goods for calculating
• In response to market expectations, the credit pence r j been increased from 45 days to 60 days. This would result in
• Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency?
• In Inventory Turnover calculation, what is taken in the numerator?