Efficiency

Question 1

Times Inventory Turnover

Answer 1

Cost of Sales/Average Inventory

Question 2

Days in Inventory

Answer 2

Average Inventory/Cost of Sales x 365

Question 3

Times Debtors Turnover

Answer 3

Credit Sales/Average Accounts Receivable

Question 4

Days in Debtors

Answer 4

Average Accounts Receivables/Credit Sales x 365

Question 5

Activity Cycle

Answer 5

Days in Inventory + Days in Debtors