Assume that a company’s Inventory Turnover is 15. What does that mean? It takes about 15 days for inventory to move from the company to its customers. Receivables turn over 15 times per year. Inventories turn over 15 times per year. The average account receivable is collected about 15 days after the credit sale occurs.
Assume that a company’s Inventory Turnover is 15. What does that mean? It takes about 15 days for inventory to move from the company to its customers. Receivables turn over 15 times per year. Inventories turn over 15 times per year. The average account receivable is collected about 15 days after the credit sale occurs.
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Assume that a company’s Inventory Turnover is 15. What does that mean?
It takes about 15 days for inventory to move from the company to its customers.
Receivables turn over 15 times per year.
Inventories turn over 15 times per year.
The average account receivable is collected about 15 days after the credit sale occurs.
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