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Tim Rogers is senior equity analyst with White Capital LLP. While analyzing the financial statements of Drako Toys Inc., a toy manufacturer based in Cleveland, Ohio, Tim concludes that Drako is expected to see above-average sales growth over the next three years. Which of the following conditions most likely support Tim’s conclusion? A. Increase in raw-materials and work-in-progress inventory and corresponding decline in finished goods inventory over the last two years. B. Finished goods inventory growing faster than sales in the last two years. C. Increase in finished goods inventory and corresponding decline in raw-materials and work-in-progress inventory over the last two years. |