Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories decline? Use a 365-day year.
Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories decline? Use a 365-day year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![HN3&56780
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2
4
9
1
Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO FO
believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories ries
decline? Use a 365-day year.
Cost of goods sold =
Inventory =
Inventory conversion period (ICP) =
85.88
Benchmark inventory conversion period (ICP) = 38.00
$85,000
$20,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9e9feab-0202-464c-a3ea-6a58c0110585%2F00598102-7c54-4b74-ac12-816deb4dc86f%2Flnvpm5_processed.png&w=3840&q=75)
Transcribed Image Text:HN3&56780
1
2
4
9
1
Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO FO
believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks' average. If this were done, by how much would inventories ries
decline? Use a 365-day year.
Cost of goods sold =
Inventory =
Inventory conversion period (ICP) =
85.88
Benchmark inventory conversion period (ICP) = 38.00
$85,000
$20,000
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