Solution-Explain why the former ratio uses cost of sales

Explain why the former ratio uses cost of sales

Reference no: EM13847613

When calculating days inventory, the average inventory level is compared with the cost of sales. When calculating days debtors, the average debtors level is compare with the sales revenue. Explain why the former ratio uses cost of sales whereas the latter uses sales revenue.

Reference no: EM13847613

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Explain why the former ratio uses cost of sales : When calculating days debtors, the average debtors level is compare with the sales revenue. Explain why the former ratio uses cost of sales whereas the latter uses sales revenue.

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Explain why the former ratio uses cost of sales

Reference no: EM13847613

Reference no: EM13847613

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