A firm's inventory turnover (IT) is 5 times on a cost of goods sold (COGS) of $800,000.

Question

If the IT is improved to8 times while the COGS remains the same,

a substantial amount of funds is released from or additionally invested in inventory. In fact,

$160,000 is released.

$100,000 is additionally invested.

$60,000 is additionally invested.

$60,000 is released.

Emad Mohammed said abdalla · Answer

>>>>>>>>>>>> $60,000 is released.

HAJA NAJIBUDEEN JAFFAR · Answer

Hi

This is correct answer the old turnover is800,000/5 =160,000 and New turnover is800,000/8 =100,000 so, 160,000-100,000 =60,000 is released from the inventory amount

Asad Ullah · Answer

60000 will be released>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Mohammed Shahid Ullah · Answer

The fund amounted to $60,000 will be released for increase inventory turnover & unchanged cost of goods sold.

Mir Mujtaba Ali · Answer

Agree with Mr. Emad<<<>>><<<>>>

HANIF KHAN · Answer

$100,000 is additionally invested

Wasi Rahman Sheikh · Answer

Agree with Mr. Emad answer <<<<<<<<<<<<

ABDUL SHAFEEQ PADIKKAL · Answer

The old turnover is 800,000/5 =160,000

and New turnover is800,000/8 =100,000

Therefore, 160,000-100,000 =60,000 is released

As Saleh · Answer

*************** $60,000 is released.

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A firm's inventory turnover (IT) is 5 times on a cost of goods sold (COGS) of $800,000.

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