Question: please give correct option with explanation Otherwise downvote. Select one that is a WRONG interpretation of the inventory turnover ratios in the below table. Company

please give correct option with explanation Otherwise downvote.

please give correct option with explanation Otherwise downvote. Select one that is

Select one that is a WRONG interpretation of the inventory turnover ratios in the below table. Company A Company B |Company C Cost of Goods Sold ($million) 10 10 5 Avg. Inventory Cost ($million) 2 5 5 Inventory Turnover Ratio 5 2 Days of Inventory (days) 72 182.5 365 If A had more inventory, it could sell more goods. O Since A and B spent the same cost of goods, the higher turnover ratio of A indicates its stronger sales. Chad the longest days of inventory, and possibly it generated a relatively high average inventory cost. Since A's turnover ratio is over 4, it is inventory velocity is too fast. A spent less inventory cost than B as A held the inventory for shorter days. Conceptually, A cleared up its inventory 5 times a year.Select one that is a WRONG interpretation of the inventory turnover ratios in the below table. Company A Company B |Company C Cost of Goods Sold ($million) 10 10 5 Avg. Inventory Cost ($million) 2 5 5 Inventory Turnover Ratio 5 2 Days of Inventory (days) 72 182.5 365 If A had more inventory, it could sell more goods. O Since A and B spent the same cost of goods, the higher turnover ratio of A indicates its stronger sales. Chad the longest days of inventory, and possibly it generated a relatively high average inventory cost. Since A's turnover ratio is over 4, it is inventory velocity is too fast. A spent less inventory cost than B as A held the inventory for shorter days. Conceptually, A cleared up its inventory 5 times a year

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