DIscuss the cash flow implications of the Inventory Turnover Ratio, with attention to: ...

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Accounting

DIscuss the cash flow implications of the Inventory Turnover Ratio, with attention to:

  1. Which section of the cash flow budget statement is affected?
  2. If inventory turn ratio is 12, what does that signify?
  3. What might reduce the ratio to 6, and how would the new ratio affect the cash flow?
  4. If inventory turn ratio is low while accounts payable turnover ratio is high, is that good or bad for the firm's cash flow? Why?

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