Question: What is the desirable period combination (days) and why? Note- there is no absolute right or wrong choice, we are testing your ability to apply the principles of the financial management (re: turn-overs and periods) and your financial management reasoning in that isolated topic.
a) Days Sale in Inventory 15, Days Sale in Receivable 30
b) Days Sale in Inventory 10, Days Sale in Receivable 35
c) Days Sale in Inventory 20, Days Sale in Receivable 25