At the beginning of 2018, the new CEO of Optimus Ltd. introduced two new initiatives to improve

Question:

At the beginning of 2018, the new CEO of Optimus Ltd. introduced two new initiatives to improve the company's performance. First of all, she introduced "blowout" sales offering prices at deep discounts to reduce inventory levels. Second, she extended the period of time that customers had to pay the company from 30 days to 50 days. Although the new initiatives allowed the company to sell more products and reduce inventory, price decreases were so steep that overall sales decreased. What changes would you expect to see in the receivables and s? Explain why.
Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...