Are both of these answers correct, please explain thank you! Adams Furniture has a...
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Are both of these answers correct, please explain thank you!
Adams Furniture has a quick ratio of 2.00x,$37,575 in cash, $20,875 in accounts receivable, some inventory, total current assets of $83,500, and total current liabilities of $29,225. The company reported annual sales of $100,000 in the most recent annual report. Additionally, the company's cost of goods sold is 75% of sales. Over the past year, how often did Adams Furniture sell and replace its inventory? 3.29x2.86x8.01x2.99x The inventory turnover ratio across companies in the furniture industry is 3.289x. Based on this information, which of the following statements is true for Adams Furniture? Adams Furniture is holding more inventory per dollar of sales compared with the industry average. Adams Furniture is holding less inventory per dollar of sales compared with the industry average
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