Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ABC (Ltd) has asked for you assistance, and their accountant has given you the information below: Cash sales R90,000 Credit sales R300,000 Returns inwards R40,000
ABC (Ltd) has asked for you assistance, and their accountant has given you the information below:
- Cash sales R90,000
- Credit sales R300,000
- Returns inwards R40,000
- Opening stock R20,000
- Closing stock R40,000
- Gross profit ratio 30%
Task:
Assist ABC to calculate its inventory turnover ratio, and then explain to them the implications of having either a very high or a very low inventory turnover ratio.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started