For each pair below, indicate which firm you would expect to grant shorter or longer credit periods.

Question:

For each pair below, indicate which firm you would expect to grant shorter or longer credit periods.
a. One firm sells hardware; the other sells bread.
b. One firm's customers have an of 10; the other's customers have turnover of 15.
c. One firm sells mainly to electric utilities; the other to fashion boutiques.
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,...