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How will a percentage of sales model treat cost of goods sold if sales revenues...

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Finance

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How will a percentage of sales model treat cost of goods sold if sales revenues are expected to grow by 10% to $2 million next year? Cost of goods sold will? A. Grow at a slower rate than sales B. Remain proportionate to sales C. Be forecast to increase at the rate of inflation D. Remain constant Wilson Corporation has a cash conversion cycle of 100 days and a bank credit line of $5 million at 5% interest rate to fund its investment in inventory and accounts receivable. Wilson seeks to reduce in cash conversion cycle to 70 days by substantially increasing the inventory turnover. Which of the following is true regarding this reduction? A. The company's cash flow from operations will decrease B. Interest paid on the credit line will increase C. GAAP net income will increase D. None of the above are correct

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