Compute the company’s inventory turns

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Reference no: EM131408724

XYZ company's annual sales for its products is 5000 units and its average inventory is 500 units.

(a) Compute the company's inventory turns.

(b) If XYZ decides to increase its inventory turns, how will this impact (increase or decrease) the following?

(i) Response time to customers

(ii) Inventory capital

(iii) Days of inventory

(iv) Return on assets

(v) Cash-to-cash cycle

(vi) Working capital

Reference no: EM131408724

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