If a company were having inventory problems (producing too manyitems), how would it affect...

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Accounting

If a company were having inventory problems (producing too manyitems), how would it affect their financial statements? Would therebe any negative or positive finanical impacts?

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In accounting inventory represents a companys raw materials work in progress and finished products Financial professionals use a wide variety of quantitative and qualitative techniques to understand inventory in their investing analyses Quantitative techniques involve performing ratio analysis of the inventory by calculating ratios using financial statements Qualitative analysis includes inspecting notes to financial statements to check inventory valuation methodology and its consistency researching inventory valuation methods used by competitors and comparing them to the method used by the company The days inventory outstanding ratio is calculated as inventory See Answer

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In: AccountingIf a company were having inventory problems (producing too manyitems), how would it affect their...If a company were having inventory problems (producing too manyitems), how would it affect their financial statements? Would therebe any negative or positive finanical impacts?