In 2019, Cyrus Networks had sales of $618 million and cost of goods sold of $522 million.
Question:
In 2019, Cyrus Networks had sales of $618 million and cost of goods sold of $522 million. Its average inventory was $50 million.
a. What was Cyrus’s average inventory period?
b. How much would the value of the company increase if Cyrus could permanently reduce its average inventory period by 10 days? Assume that there are no offsetting costs to this change.
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Step by Step Answer:
a The inventory period is 35 days as follows Value Formula IncomeStatement Data Sales ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1260566093
10th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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