A firm might also want to know how rapidly it is turning over its inventories during the

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A firm might also want to know how rapidly it is turning over its inventories during the year so as to gain some insight about the liquidity of inventories. What is the formula for calculating the inventory turnover ratio?

(a) Total annual sales/Inventory

(b) Credit sales/Inventory

(c) Cost of goods sold/Inventory

(d) None of the above

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Financial Accounting For Management

ISBN: 9789385965661

4th Edition

Authors: Neelakantan Ramachandran, Ram Kumar Kakani

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