Ask Question
19 March, 19:28

The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000; beginning inventory $160,000; ending inventory $240,000; and gross profit $600,000. What is Wilkens' inventory turnover ratio for 2017

+2
Answers (1)
  1. 19 March, 19:36
    0
    6

    Explanation:

    The average turnover ratio is calculated using the formula.

    average turnover ratio = Costs of goods sold

    Average inventories

    For Wilkens Company, Costs of goods sold will be sales revenue - the gross profit

    = $1,800,000 - $600,000 = $1,200,000

    Average inventory = Beginning stock + Ending stock / 2

    = $160,000 + $240,000 / 2

    =$200

    Average turnover ratio = $1,200,000

    $200,000

    =6
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following information came from the income statement of the Wilkens Company at December 31, 2017: sales revenue $1,800,000; beginning ...” 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