(solution) New Coffee Company, LLC uses JIT (just-in-time) logistical supply

(solution) New Coffee Company, LLC uses JIT (just-in-time) logistical supply

New Coffee Company, LLC uses JIT (just-in-time) logistical supply methods. This indicates that the company doesn’t really keep large stocks of coffee on hand, which is cheaper from the standpoint of operations, but more risky because of the potential havoc any significant under- or over-supply of product could wreak. Which of the following ratios is of the utmost importance to New Coffee Company?

Question 14 options:

Debt-to-assets ratios

Inventory turnover rations

Average collection period ratios

Current ratios