Anticipated inventory turnover ratio

Reference no: EM13319845

Which of the following statements most accurately reflects the relationship between the startup cash required for a company and its anticipated inventory turnover ratio?

a. The higher a company's average inventory turnover, the greater the amount of startup cash it will require.

b. The higher a company's average inventory turnover, the smaller the amount of startup cash it will require.

c. A company's startup cash requirement is equal to its average inventory turnover times 12.

d. There is no connection between a company's average inventory turnover and the amount of startup cash it will require.

Reference no: EM13319845

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