Increase in the average aggregate inventory value

Reference no: EM13331779

A retailer of casual clothes ended the current year with annual sales (at cost) of $42 million. During the year, the inventory of apparel turned over six times. For the next year, the company plans to increase annual sales (at cost) by 15 percent.

a). What is the increase in the average aggregate inventory value required if the retailer maintains the same inventory turnover during the next year?

Reference no: EM13331779

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