Accounting 0452 · IGCSE · Calculation and understanding of accounting ratios

Calculation and understanding of accounting ratios — practice question

A trader drew up the following forecasts for the business for the coming financial year: average inventory $\$80\,000$; rate of inventory turnover $6$ times; mark-up $25\%$. What are the predicted sales for the coming financial year?

  • A$\$360\,000$
  • B$\$480\,000$
  • C$\$576\,000$
  • D$\$600\,000$

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