Data on Shin Inc for last year are shown below, along with the inventory conversion period...

 

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Data on Shin Inc for last year 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. Do not round your intermediate calculations. Cost of goods sold $78,000 Inventory Inventory Conversion Period (ICP)= $20,000 93.59 Benchmark Inventory Conversion Period (ICP)= 38.00 Data on Shin Inc for last year 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. Do not round your intermediate calculations. Cost of goods sold $78,000 Inventory Inventory Conversion Period (ICP)= $20,000 93.59 Benchmark Inventory Conversion Period (ICP)= 38.00

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Inventory Decline Calculation We can calculate the desired inventory le... View the full answer