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If a company's policy is to reduce the inventory holding period, how does this affect the projected Balance Sheet?

Q: Answer-If a company's policy is to reduce the inventory holding period, how does this affect the projected...

Inventory is estimated based on the day trend. Reducing the holding period e.g., from 60 to 45 days directly reduces the projected inventory asset on the Balance Sheet.

A It increases the projected Inventory value

B It has no impact on the Balance Sheet

C It decreases the projected Inventory value

D It increases the projected Revenue

E It decreases the Net Profit

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If a company's policy is to reduce the inventory holding period, how does this affect the projected Balance Sheet?

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