Ask Question
29 February, 03:32

Selected data pertaining to Lore Co. for the calendar year 20X4 is as follows: Net cash sales $3,000 Cost of goods sold $18,000 Inventory at beginning of year $6,000 Purchases $24,000 Accounts receivable at beginning of year $20,000 Accounts receivable at end of year $22,000 What was the inventory turnover for 20X4?

+3
Answers (1)
  1. 29 February, 04:10
    0
    The answer is: The inventory turnover for 20x4 was 2 times

    Explanation:

    In order to find the inventory turnover we must first calculate the ending inventory:

    COGS = beginning inventory + purchases - ending inventory

    $18,000 = $6,000 + $24,000 - ending inventory

    ending inventory = $30,000 - $18,000 = $12,000

    Inventory turnover = COGS / Average inventory

    Average inventory = (beginning inventory + ending inventory) / 2

    Inventory turnover = $18,000 / [ ($6,000 + $12,000) / 2] = $18,000 / $9,000

    Inventory turnover = 2
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Selected data pertaining to Lore Co. for the calendar year 20X4 is as follows: Net cash sales $3,000 Cost of goods sold $18,000 Inventory ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers