O-LevelAccountingAnalysis and interpretation7707/11 · Oct/Nov 2017 · Q281 Mark
In year 1, Sam's gross profit was calculated as follows. $ revenue $180000 opening inventory 6000 purchases 118000 124000 closing inventory (4000) 120000 gross profit 60000 In year 2, the amount of revenue and gross profit was the same as in year 1 but the purchases increased to $124000. What was the rate of turnover of inventory in year 2?
A20 times
B21 times
C24 times
D30 times
✓ Correct answer
A: 20 times
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