Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. data on liu inc. for the most recent year are show

Data on Liu Inc. for the most recent year are shown below, along with the...

80.2K

Verified Solution

Question

Finance

Data on Liu Inc. for the most recent year are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories decline? Use a 365-day year. Cost of goods sold = $85,000 Inventory = $20,000 Inventory conversion period (ICP) = 85.88 Benchmark inventory conversion period (ICP) = 38.00

a. $8,129 b. $7,316 c. $9,032 d. $11,151 e. $10,036

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses...

Biology
1.2K views

2. Recent molecular biology advance in tumor diagnosis and treatment ,describe in details (more than 200...

Biology
1.2K views

How do I relate transcription and transfer of energy? Please give me detailed explanation! Thanks

Biology
1.2K views

1.Which statement is true about nuclear fission or bombs? A moderator slows down neutrons to make...

Psychology
1.2K views

what element of human life does zhuangzi identify as the most prone to lead to misunderstandings?

Psychology
1.2K views

Is transracial adoption better or worse for the development of children? Write a short paragraph of...

Basic Math
1.2K views

1. It is believed that the population proportion of adults in the US who own dogs...

Biology
1.2K views

Which of the following is not a product of fermentation Lactic acid Carbon dioxide Ethanol...

Basic Math
1.2K views

In ANOP T is the centroid If TQ 6 find PT Q N R T...

Accounting
1.2K views

answer the required 1-6 Check...

Accounting
1.2K views

On December 31, 2019, Beam, Inc., borrowed $1,000,000 on an 5%, ten-year mortgage note payable....

Accounting
1.2K views

Childress Company produces three products, K1, S5. and G9. Each product uses the same type...