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23 September, 13:08

If a firm's inventories on hand are $200,000, its cost of goods sold is $600,000, and its sales are $800,000, what is the inventory turnover?

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  1. 23 September, 13:12
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    inventory turnover = 3

    Explanation:

    Giving the following information:

    A firm's inventories on hand are $200,000

    The cost of goods sold is $600,000.

    To calculate the inventory turnover, we need to use the following formula:

    inventory turnover = cost of goods sold / average inventory

    inventory turnover = 600,000/200,000 = 3
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