Mayree is the owner of Spines Books, a small eclectic-style bookstore in a bustling college town. Mayree prides herself in selecting hard-to-find books and magazines that her clientele enjoy. Recently, Mayree is experiencing a cash flow shortage, and she is concerned that she may be purchasing too many copies of each title. Having recently completed a business class, you suggest to Mayree that she calculate the ________ ratio for her store, and then compare it to other stores in her industry.
A) current
B) debt to equity
C) return on equity
D) inventory turnover

Question

Quizplus · Accepted Answer

A higher inventory turnover ratio indicates greater efficiency in the operation. The goal is to maximize the use of cash and minimize inventories.

Mayree Is the Owner of Spines Books, a Small Eclectic-Style