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Grant Communications is forecasting its financial statements for the upcoming year. Highlights include: - Current...

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Finance

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Grant Communications is forecasting its financial statements for the upcoming year. Highlights include: - Current assets of $6 million - Current ratio of 2.0 - Sales of $20 million - Inventory turnover ratio (Sales/Inventory) of 6 The company's CFO is concerned about the forecasted inventory turnover ratio. Her goal is cut inventory enough to obtain an inventory turnover ratio of X, which is the industry average, while still maintaining sales at $20 million. If the company can accomplish this goal, the cash generated from the cut in inventories will be used to cut accounts payable. This will give the firm a Quick Ratio [(Current Assets - Inventory) / Current Liabilities] of 1.60. What is X, the desired inventory turnover ratio? Enter your answer, truncated to 2 decimal places. For example, enter 7.777 as 7.77

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