'Qa'w RAymond 3-4861

how accounts receivable and merchandise turn affect your business.

Assuming that you 'n'anted to make 20/o and the relationship of your assets to total inventory was 2, or )/z inventory and I other assets, your overhead was 20/o and you turned your merchandise once a year, your markup would have to be 75/o in order to make 2O/o. If all other factors were the same and you turned merchandise 12 times a year, the markup n'ould be 29/o. In both of these cases as previously stated, the net return to investment is exactly the same.

This 2-times relationship is a very tight operation. Let's suppose that you're running a country yard and you think that it is good policy to extend credit on rather a long-term basis to your farmers. There isn't anything .r,r'rong lvith