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Examine the Four Following Conditions Involving Inventory Turnover

Question 83

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Examine the four following conditions involving inventory turnover.Discuss what economic factors might be leading to the condition and whether it suggests positive or negative future economic conditions.
 Condition A: Increasing cost of goods sold  to sales percentage, coupled with an  increasing inventory turnover.  Condition B: Decreasing cost of goods sold  to sales percentage, coupled with a  decreasinginventory turnover.  Condition C: Increasing cost of goods sold  to sales percentage, coupled with a  decreasing inventory turnover.  Condition D: Decreasing cost of goods sold  to sales percentage, coupled with an  increasing inventory turnover. \begin{array}{l|l}\hline \begin{array}{l}\text { Condition A: Increasing cost of goods sold } \\\text { to sales percentage, coupled with an } \\\text { increasing inventory turnover. }\end{array} & \begin{array}{l}\text { Condition B: Decreasing cost of goods sold } \\\text { to sales percentage, coupled with a } \\\text { decreasinginventory turnover. }\end{array} \\\hline \begin{array}{l}\text { Condition C: Increasing cost of goods sold } \\\text { to sales percentage, coupled with a } \\\text { decreasing inventory turnover. }\end{array} & \begin{array}{l}\text { Condition D: Decreasing cost of goods sold } \\\text { to sales percentage, coupled with an } \\\text { increasing inventory turnover. }\end{array} \\\hline\end{array}

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Condition A: Increasing cost of goods so...

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