Homework Clinic

Social Science Clinic => Accounting => Topic started by: NguyenJ on Feb 19, 2020

Title: Why would a slow inventory turnover rate be a red flag in a financial statement analysis?
Post by: NguyenJ on Feb 19, 2020

Why would a slow inventory turnover rate be a red flag in a financial statement analysis?
◦ The company may not be performing inventory counts.
◦ The company may have obsolete inventory.
◦ The company may have bad salespeople.
◦ The company may be understating inventory.

Title: Why would a slow inventory turnover rate be a red flag in a financial statement analysis?
Post by: juliaf on Feb 19, 2020

The company may have obsolete inventory.