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

Mathematics

Felix Novak

29 May, 20:25

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.

+1

Answers (1)

Know the Answer?

Diamond Lang · 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