Tinker's cost of goods sold in the year of sale (2016) was $750,000 and 2015 cost of goods sold was $770,000. the inventory at the end of 2016 was $188,000 and at the end of 2015 the inventory was $208,000. tinker's inventory turnover during 2016 was closest to:

Question

Lance Kirby

Business

1 July, 14:23

Tinker's cost of goods sold in the year of sale (2016) was $750,000 and 2015 cost of goods sold was $770,000. the inventory at the end of 2016 was $188,000 and at the end of 2015 the inventory was $208,000. tinker's inventory turnover during 2016 was closest to:

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Harper Hutchinson · Answer 1

Inventory turnover = Cost of goods sold / Average Inventory

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

= ($188,000 + $208,000) / 2

= $198,000

Inventory turnover = $770,000 / $198,000

= 3.89 times.