Gce Model Questions Vol1 2020 Commerce Question 25
Practice objective / multiple choice question 25 from the 2020 Gce Model Questions Vol1 Commerce examination.
A retailer's opening stock at the start of the year is ₦80,000 and purchases during the year total ₦240,000. The closing stock at year‑end is ₦70,000 and net sales for the year are ₦500,000.\n(a) Calculate the inventory turnover ratio and the average days in inventory.\n(b) If the retailer wishes to reduce the average days in inventory to 60 days, what should be the target closing stock, assuming opening stock and purchases remain unchanged?
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About This Question
This is Gce Model Questions Vol1 2020 Commerce Question 25. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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