The average age of inventory ratio would most likely be considered a. a profitability ratio b....

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Question

The average age of inventory ratio would most likely be considered a. a profitability ratio b....

The average age of inventory ratio would most likely be considered

a. a profitability ratio

b. a leverage ratio

c. a working capital measure

d. a debt ratio

business finance

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Answer 1

Answer #1

c. a working capital measure

Inventory is a part of working capital. Age of inventory states the time taken in converting inventory to sales. Therefore, thsi will be a working capital measure

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Answer 2

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