An increasing inventory turnover ratio indicates that: a.a company has reduced the time it takes to purchase and sell inventory. b.a company is having trouble selling its inventory. c.a company may be holding too much inventory. d.a company has sold inventory at a higher profit.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
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An increasing inventory turnover ratio indicates that:

a.a company has reduced the time it takes to purchase and sell inventory.
b.a company is having trouble selling its inventory.
c.a company may be holding too much inventory.
d.a company has sold inventory at a higher profit.
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