What happens when firms increase their rates of inventory

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Reference no: EM13824448

Problem-

Firms that successfully increase their rates of inventory turnover will, among other things,

a). be able to reduce their borrowing needs

b). be able to reduce their dividend payments to stockholders

c). find it more difficult to be given credit by their resource suppliers

d). have a greater need for high balances in their cash accounts

Additional Requirement-

This problem belongs to Basic Accounting and it discusses about what happens when firms increase their rates of inventory turnover.

Reference no: EM13824448

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