H Limited’s cost of sales for the recent two years (Year 2 and Year 1) is as follows:
Which statement regarding the efficiency of inventory turnover is correct?
1 )
Year 2 is better because the average inventory is higher.
2 )
Year 2 is better because the inventory turnover (in days) is higher.
3 )
Year 2 is worse because the cost of sales is higher.
Year 2 is worse because the inventory turnover (in days) is higher.
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