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The United Colours Corporation has $20 million in Sales, and its cost of goods sold is...

The United Colours Corporation has $20 million in Sales, and its cost of goods sold is $15 million. The average inventory balance for the company is $10 million. In order to meet the industry average of 80 days, how would the firm have to change its investment in INVENTORY?
Select one:
a. Decrease by $7.95 million
b. Decrease by $2.05 million
c. Increase by $2.05 million
d. Increase by $7.95 million

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Expert Solution

jeff jeffy answered 1 year ago
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