A company has worked out inventory turnover periods for two consecutive years. Year 1: inventory turnover = 90 days Year 2: inventory turnover = 120 days The company directors have put forward these possible explanations for the change. 1. Purchases have decreased. 2. Purchases have increased. 3. Sales have decreased. 4. Sales have increased. What could explain the change?
- A1 and 3
- B1 and 4
- C2 and 3
- D2 and 4