Problem:
Denver Interiors, Inc., has sales of $836,000 and cost of goods sold of $601,000. The firm had a beginning inventory of $36,000 and an ending inventory of $47,000.
Required:
Question: What is the length of the inventory period? An increase in which one of the following is an indicator that an accounts receivable policy is becoming more restrictive?
Note: Provide support for your underlying principle.