Suppose you calculate an inventory turnover for the Rapid Corpo- ration of three times. a. Explain

Suppose you calculate an inventory turnover for the Rapid Corpo- ration of three times.

a. Explain why a high turnover may be seen as favorable information about the management of the firm.

b. Explain why a low turnover may be seen as unfavorable informa- tion about the management of the firm.

c. Explain how you would determine whether Rapid’s inventory turn- over indicates good operating performance.