Amount of inventory on hand at a constant level

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Reference no: EM131625383

The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level. Assume that both the cost per unit and the selling price per unit also remained constant. This accomplishment will be reflected in the firm's financial ratios in which one of the following ways?

Decrease in the inventory turnover rate.

Decrease in the net working capital turnover rate.

Increase in the fixed asset turnover rate.

Decrease in the day's sales in inventory.

Decrease in the total asset turnover rate.

Reference no: EM131625383

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