Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

Abhinav gave the information below. For the year ending 31 December 2019: purchases $112\,500$, cost of sales $115\,500$. For the year ending 31 December 2020: purchases $124\,000$, cost of sales $120\,000$. Inventory figures were: 1 January 2019 $7\,000$. 31 December 2019 $4\,000$. 31 December 2020 $8\,000$. What was the rate of inventory turnover for the year ending 31 December 2020?

  • A15 times
  • B20 times
  • C21 times
  • D30 times

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