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25 September, 05:50

Cool Lope Shaved Ice, Inc.'s cost of goods sold for the year is $1,900,000, and the average merchandise inventory for the year is $132,000. Calculate the inventory turnover ratio of the company. (Round your answer to two decimal places.)

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  1. 25 September, 08:02
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    Inventory turnover ratio = 14.39 (Approx)

    Explanation:

    Given:

    Goods sold for the year = $1,900,000

    Average merchandise inventory for the year = $132,000

    Inventory turnover ratio = ?

    Computation of inventory turnover ratio:

    Inventory turnover ratio = Goods sold for the year / Average merchandise inventory for the year

    Inventory turnover ratio = $1,900,000 / $132,000

    Inventory turnover ratio = 14.3939394

    Inventory turnover ratio = 14.39 (Approx)
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Home » Business » Cool Lope Shaved Ice, Inc.'s cost of goods sold for the year is $1,900,000, and the average merchandise inventory for the year is $132,000. Calculate the inventory turnover ratio of the company. (Round your answer to two decimal places.)
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