Erin Mays is the owner of Witt's End Boutique. Her store has an inventory turnover ratio of about 10 (unusually high for this type of business) . Which of the following statements is not true?
A) This ratio suggests efficient operations.
B) A ratio of 10 means that Mays has $10 in sales for every $1 of total assets.
C) This suggests that Mays may be able to use some of her resources elsewhere.
D) This suggests a relatively small amount of money is tied up in inventory.
Correct Answer:
Verified
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