Ask Question
BusinessBusiness
6 December, 11:34

Use the following information:Net sales $ 240,000Cost of goods sold 172,000Beginning inventory 53,000Ending inventory 43,000Calculate the inventory turnover ratio.

+3
Answers (1)
  1. 6 December, 12:02
    0
    The inventory turnover ratio is 3.58 times

    Explanation:

    Inventory turnover ratio an efficiency ratio that indicates how many times a company sells and replaces its stock of goods during a particular period

    Inventory turnover ratio is calculated by using following formula:

    Inventory turnover ratio = Cost of Goods Sold/Average Inventory

    In there:

    Average Inventory = (Beginning inventory + Ending inventory) / 2

    In the company:

    Average Inventory = ($53,000 + $43,000) / 2 = $48,000

    Inventory turnover = $172,000/$48,000 = 3.58 times
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Use the following information:Net sales $ 240,000Cost of goods sold 172,000Beginning inventory 53,000Ending inventory 43,000Calculate the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
JEN Corp. is expected to pay a dividend of $4.75 per year indefinitely. If the appropriate rate of return on this stock is 8 percent per year, and the stock consistently goes ex-dividend 20 days before dividend payment date, what will be the
Answers (1)
Given the rapid advancements in technology in developed countries and fast pace of globalization, it is not possible to bridge the global digital divide. Do you agree with this statement?
Answers (1)
Describe the basic features and characteristics of bonds. How can bonds be secured? What is the difference between a callable bond and a convertible bond?
Answers (1)
In "traditional channel systems," the channel members: A. consider traditional values-like cooperation and respect-as central to their relationship. B. have franchise contracts. C. usually have a common product-market commitment. D.
Answers (1)
For the most recent year, Camargo, Inc., had sales of $546,000, cost of goods sold of $244,410, depreciation expense of $61,900, and additions to retained earnings of $74,300.
Answers (1)
New Questions in Business
Suppose that there are two industries, A and B. There are five firms in industry A with sales at $5 million, $2 million, $1 million, $1 million, and $1 million, respectively. There are four firms in industry B with equal sales of $2.
Answers (1)
Despite having the highest overall GDP, the US ranks fifth for productivity when considering the GDP per hour worked. What contributes to this discrepancy?
Answers (1)
Young raxxi invested in a back-loading mutual fund at a rate of 3%. the net asset value at the time of purchase was $18.48. at the time young sold his fund shares the net asset value was $18.25. his investment was $9,240.
Answers (1)
12. An industry is defined as: a. A collection of firms that compete with one another in a single product market. b. A collection of firms that exist in a particular geographical area (e. g. Spain). c.
Answers (1)
Why are only final goods and services included in the calculation of GDP?
Answers (1)
Home » Business » Use the following information:Net sales $ 240,000Cost of goods sold 172,000Beginning inventory 53,000Ending inventory 43,000Calculate the inventory turnover ratio.
Sign Up Forgot Password?