The Supply Chain Director, Mr. Connor, is gathering information and requesting reports to define an implement an inventory reduction program. With this, Tea4U would reduce its inventory by $650. Naturally, a negative impact in sales can be expected. If sales are reduced by $1800 and the inventory is reduced by $650, how would working capital turnover be affected?

Answer rating: 100% (QA)

To calculate the impact on working capital turnover we need to first find the initial and final levels of working capital Initial Working Capital WC C... View the full answer