depreciation and inventory turnover net, everything, following, recently, decrease

bigredhockey55

(from Schweser QBank)

Company A recently reclassified many of their assets such that the average useful life of their depreciable assets was reduced. Which of the following is the most likely result from this change on net income and inventory turnover? (Assume everything else remains constant.) Net income will:

A) decrease and inventory turnover may or may not change.

B) increase and inventory turnover will not change.

C) decrease and inventory turnover will rise.


Your answer: C was incorrect. The correct answer was A) decrease and inventory turnover may or may not change.


How does depreciation relates inventory turnover? Thanks.