Botica Heaven has a total annual sale of PhP 40 M and is in operation with an inventory value of Php 3.2M in January 2020, and Php 1.5 M in December 2020.
Calculate for the inventory turnover.
Inventory Turnover = 40 M/ 1.5 M – 3.2 M
Inventory Turnover = 40 M - (3.2 M/ 1.5 M)
Inventory Turnover = 40 M/ 3.2 M – 1.5 M
Inventory Turnover = 3.2 M/ 1.5 M – 40 M
Which of the following statements is TRUE?
The inventory is sold and replenished 2 times in a year.
The inventory is sold and replenished 4 times a year.
The inventory may be sold and replenished anytime during the year.
The inventory is sold and replenished 1.96 times a month.
What is the implication of Botica Heaven's inventory?
The purchase orders are released anytime.
The schedule of purchase orders are released twice a month.
Purchase orders are released once to four times a month.
The schedule of the release of purchase orders is varied.
Which of the following is TRUE regarding the stocks of Botica Heaven?
The stocks of the drugstore are held in the shelves for 15.5 days only.
The stocks are held in the shelves only for 23.5 days.
The stocks are held for approximately 2 months.