Inventory reduction sale tightens his working capital

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Inventory reduction sale, tightens his working capital policy to the averages.

1.Why does Holmes want Reed's to have an inventory reduction sale, and what does he think will be accomplished by it?

2.Jim Reed had adopted a very loose working capital policy with higher current assets than industry averages. If he merely tightens his working capital policy to the averages, should this affect his sales?

Reference no: EM13355824

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