Question 3(b)
[Maximum number: 3]
Refer to Appendix 1. Calculate CQ's rate of inventory turnover.
CAIE A-Level Business Formula reference Financial efficiency ratios
Practise applying efficiency-ratio formulae to table or appendix data, then stating what turnover days or inventory movement show.
How this is tested
- calculate trade receivables days from trade receivables and credit sales data
- calculate inventory turnover using cost of sales and average inventory from an appendix