A comparison of 2014 to 2013 performance shows that Neir Companys inventory turnover increased substantially although sales

Question:

A comparison of 2014 to 2013 performance shows that Neir Company’s inventory turnover increased substantially although sales and inventory amounts were essentially unchanged.

Required:
Which of the following statements best explains the increased ?
1. Cost of goods sold decreased.
2. turnover increased.
3. Total increased.
4. Gross profit percentage decreased.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.