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Financial data for Super Tires for 2015 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.
Sales =
$165,000
Inventory =
$30,000
Inventory conversion period (ICP) =
81.11
Benchmark inventory conversion period (ICP) =
38.00
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