A company had an inventory turnover ratio of 6.2 in year 1 and an inventory turnover ratio of 4.5 in year 2. Which of the following might explain the decrease in the ratio?

Group of answer choices :

1. The percentage increase in average inventory exceeds the percentage increase in cost of goods sold.
2. The percentage decrease in average inventory was greater than the percentage decrease in cost of goods sold.
3. The percentage increase in cost of goods sold was greater than the percentage increase in average inventory.
4. The percentage decrease in average inventory is equal to the percentage decrease in cost of goods sold.