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30 April, 13:08

Net sales $410,660 Cost of goods sold (purchased items) $102,500 Net income after taxes $ 45,415 Current assets $299,665 Current liabilities $276,230 Avg. inventory value $ 91,620 Find out the inventory turnover from the information provided above. Group of answer choices 1.1 0.3 1.6 0.9 Do not have enough information to compute

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  1. 30 April, 16:27
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    1.1 times

    Explanation:

    The formula to compute the inventory turnover ratio is shown below:

    Inventory turnover ratio = Cost of goods sold : average inventory

    = $102,500 : $91,620

    = 1.12 times

    Since the average inventory is given so there is no need to find out. We simply apply the formula which is presented above.

    Moreover, it shows a relationship between the cost of goods sold and the average inventory
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