Torrence Inc

Torrence Inc. has recently calculated the inventory turnover for the current year to be 30. In prior years, the same ratio was always lower. Which of the following statements would be the best interpretation for the reason for the ratio's change?

A) The company had less sales in the current year than in prior years.
B) The company purchased less inventory in the current year than in prior years.
C) The company took fewer days to sell its inventory in the current year than in prior years.
D) The company took more days to sell its inventory in the current year than in prior years.

Correct Answer:

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