An Inventory Turnover Ratio of 8

Multiple Choice

An inventory turnover ratio of 8.5 times indicates that:

A) the inventory of the firm turns over after 8.5 days.
B) the value of the inventory of the firm is 8.5 percent of the total assets of the firm.
C) the value of sales of the firm is 8.5 times the value of its sales.
D) the firm will restock its inventory every 43 days.
E) the firm will sell its inventory once in 43 days.