Analysis of a company's financial statements: below are simplified versions of the balance sheet and income statement for toys by tom, inc. use this information to answer the following question.

income statement

sales $100,000
cogs $41,700
variable sales and admin $10,000
fixed sales and admin $5,000
net income $43,300
balance sheet

assets
cash $10,000
acconts receivable $5,000
inventory $10,000
liabilities
accounts payable $5,000
notes payable $5,000
shareholder's equity
common stock $5,000
retained earnings $10,000
a 15% increase in inventory turns for toys by tom, inc. would bring this ratio to suggesting in

109 days; a deterioration; profitability

3.9 days; a deterioration; profitability

4.8 times; an improvement; efficiency

3.9 times; an improvement; efficiency

The answer is:

A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to 4.8 times, suggesting improvement in efficiency.

Explanation:

We have the current Inventory turnover = COGS / Inventory = 41,700/10,000 = 4.17 times

=> An 15% increase in the Inventory turnover will bring the Inventory turnover ratio to: 4.17 x 1.15 = 4.8 times;

Increasing in inventory turnover may be the result of higher sales ( thus higher COGS) or low level of inventory holding - thus limiting the resources spending on idle inventory. So, higher level of inventory turnover in someways suggesting improvement in efficiency.

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or

a question is asked by the teacher.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.