A firm's cash borrowing needs can be reduced if its inventory turnover rate can be increased.

Name: A firm's cash borrowing needs can be reduced if its inventory turnover rate can be increased.
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Question

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By increasing the inventory turnover rate, the firm sells its inventory more frequently, generating cash inflows, which can be used to reduce its cash borrowing needs. This reduces the amount of money the firm needs to borrow to cover its operating and financing activities.

A Firm's Cash Borrowing Needs Can Be Reduced If Its