Question ID: HOCK CMA.P1A5.11 (Topic: Top-Level Planning and Analysis)
- This topic has 4 replies, 3 voices, and was last updated 4 months, 2 weeks ago by Lynn Roden.
I am a bit confused by this question. If we are to match the inventory ratio to the industry average, thus reducing inventory from $20,350 to $18,205 and with a corresponding increase (i.e. $2,145) to cash. Wouldn’t this change leave the total assets unchanged at $125,650?
And if the total assets stays unchanged, wouldn’t that keep the “additional funds needed” the same at $938? (since Total Liabilities & SE stayed the same)
Please advise, thanks.
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