true or false: An increase in inventory turnover will improve a company’s cash flow
When inventory turnover increase, company’s inventory balance will decrease. When inventories are decreased, free cash flow will increase.
Hence, given statement is True.
true or false: An increase in inventory turnover will improve a company’s cash flow
The higher the inventory turnover, the better. True False
a) True or false: The simple rule for inventory turnover is that a low ration is preferable. b) True or false: An error in the ending inventory balance will cause an error in the calculation of cost of goods sold. c) True or false: Underwood had cost of goods sold of $8 million and its ending inventory was $2 million. Therefore, its days' sales in inventory equals 25 days. d) True or false: The choice of an inventory valuation method...
As an intern at Crescent Corporation, you are asked to evaluate the company’s cash flow cycle. The company’s annual sales were $250,000 with a net profit margin of 8% and fixed asset turnover ratio of 4 times. The company’s inventory turnover ratio, based on sales figure, was 7. The company collected its receivables in 28 days on average while its payables deferral period extended 35 days. (Hint: Use Sales/Inventories as the Inventory Turnover measure whenever necessary in the following questions)....
As an intern at Crescent Corporation, you are asked to evaluate the company’s cash flow cycle. The company’s annual sales were $250,000 with a net profit margin of 8% and fixed asset turnover ratio of 4 times. The company’s inventory turnover ratio, based on sales figure, was 7. The company collected its receivables in 28 days on average while its payables deferral period extended 35 days. (Hint: Use Sales/Inventories as the Inventory Turnover measure whenever necessary in the following questions)....
Suggest transactions that improve cash flow but do not increase profit.
question #39 Indicate whether the following statement is true or false. The cost flow of inventory should be consistent with the physical flow. True or False True False
A cash payment for purchase of inventory requires a credit to inventory. true or false?
When a company sells more than it produces, its inventory levels increase True or False True False
question #45 Indicate whether the following statement is true or false. The LIFO inventory flow method assumes that mems purchased last should stay in the ending inventory. If they have not been sold True or False True False
True or False? Many companies use free cash flow to estimate the amount of cash that would be available for unexpected opportunities.