Compute the stock turnover in dollars for a product that has sales of $6,000 and an average value of inventory investment of $1,500.

Question

Van Castillo

Mathematics

19 December, 01:55

Compute the stock turnover in dollars for a product that has sales of $6,000 and an average value of inventory investment of $1,500.

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Answers (1)

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Sammy Hurst · Answer 1

Question: It should be inventory turnover.

Solution:

Inventory turnover = Cost of goods sold/Average inventory

Substituting the values given for cost of goods and average inventory;

Inventory turnover = 6,000/1,500 = 4