During the year ended 30 June 2012 a company’s sales were £498,400. As at 30 June 2011 the cost of its inventory was £98,200 and its trade payables £124,600. Identify its inventory turnover ratio in each of the following independent scenarios:

(a) Its purchases in the year ending 30 June 2012 were £392,400 and the cost of year-end inventory £112,400.

(b) As at 30 June 2012 its cost of inventory was £74,200 and trade payables £114,800; while it paid £294,800 to its suppliers during the year ended 30 June 2012.

(c) As at 30 June 2012 the cost of its inventory was £148,200 and throughout the year it sold its goods at consistent prices calculated at cost plus 25%.

Transcribed Image Text:

w 3.7 times x 26.8% y 3.5 times z 28.0%