Question: By using references and in your own words, answer these two requirements. Requirement 1: 1. Why is a high inventory turnover considered to be a

By using references and in your own words, answer these two requirements.

Requirement 1:

1. Why is a high inventory turnover considered to be a positive indicator?

2. Is it possible to have a high inventory turnover and a high days' sales in inventory? Why?

Requirement 2:

1. How does the return on total assets differ from the return on stockholders' equity?

2. Which ratio is normally higher? Why?

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