Solution-Problem regarding the inventory conversion period

Problem regarding the inventory conversion period

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Reference no: EM131115532

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

Reference no: EM131115532

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Problem regarding the inventory conversion period

Reference no: EM131115532

Reference no: EM131115532

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