Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

A business gives this extract from its income statement: opening inventory $15\,000$, purchases $180\,000$, closing inventory $(18\,750)$, and cost of sales $176\,250$. What is the rate of inventory turnover?

  • A$9.4$ times
  • B$9.6$ times
  • C$10.4$ times
  • D$10.7$ times

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