Question
Given figures regarding the 2022 and 2023 financial statements such as statement of financial position, statement of cash flows, statement of profit or loss and
Given figures regarding the 2022 and 2023 financial statements such as statement of financial position, statement of cash flows, statement of profit or loss and others such as no. of ordinary shares in the market at each year and their share price, how can you determine whether or not a company should buy further inventory as they are concerned about maintaining an appropriate level of inventory to ensure demand is met. The advisers say that a good level of inventory is one month of COGS. What financial ratio should you use to solve this problem and how do you solve it?
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