Select Any One Of the Following Options: From the following data given for the period 2017, 2018 and 2019 of the organisation, choose the most appropriate conclusion. Receivable days are 40 days, 55 days and 75 days respectively. Days of holding inventory are 80 days, 100 days and 154 days respectively.  The Efficiency in terms of Receivables in the organisation and liquidity of inventory both are diluting. The Efficiency in terms of Receivables in the organisation and liquidity of inventory both are improving. The Efficiency in terms of Receivables in the organisation is improving but liquidity of inventory is diluting. The Efficiency in terms of Receivables in the organisation is diluting but liquidity of inventory is improving.

Which of the following statements regarding days inventory is incorrect?Correct Answer  Days inventory is much higher for a supermarket than a clothing retailer.   All of these options are incorrect.   Days inventory is a measure of the efficiency of an entity at selling inventory. You Answered  Days inventory is a measure of the average length of time it takes to sell inventory.

Inventories        - $150,000Receivables       - $300,000Cash                  - $25,000Payables            - $230,000Overdraft           - $90,000Revenue            - $2,700,000Cost of sales      - $1,300,000Gross profit        - $1,400,000 What is the inventory holding period?Group of answer choices65 days78 days41 days42 days

LO 9.3 Which of the following best represents a positive product of a lower number of days’ sales in receivables ratio?Choose one answer from the options below.A. collection of receivables is quick, and cash can be used for other business expendituresB. collection of receivables is slow, keeping cash secured to receivablesC. credit extension is lenientD. the lender only lends to the top 10% of potential creditorsBackNext

Review the statements below and select the ones that are correct regarding the days' sales in inventory ratio. (Check all that apply.)Multiple select question.The ratio is useful in evaluating how quickly inventory is being sold.The ratio is often viewed as a measure of the buffer against out-of-stock inventory.The ratio reveals how much inventory is available in terms of the number of days' sales.The ratio estimates how many days it will take to convert inventory into accounts receivable or cash.The ratio measures what percentage of profit the company is making for every dollar of inventory it sells.

Stoney Brooke, Incorporated, has sales of $1,040,000 and cost of goods sold of $838,300. The firm had a beginning inventory of $43,000 and an ending inventory of $58,000. What is the length of the inventory period? Assume 365 days per year.Multiple Choice21.69 days18.47 days21.99 days17.72 days18.72 days