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Richard Enterprise (RE) uses a periodic inventory system and has just completed a physical inventory count for the financial year ended 31 December 2020 .

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Richard Enterprise (RE) uses a periodic inventory system and has just completed a physical inventory count for the financial year ended 31 December 2020 . Some selected items for the last three financial years are as follows: Required (iv) RE's cost of sales has remained steady but its inventory has increased considerably over the last two years. What does this information tell you about the company's inventory turnover? Calculate its inventory turnover and explain your answer. (4 marks) (v) RE purchases its inventory on terms "net 25 days". Evaluate and comment whether RE has any potential cashflow problem in 2020

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