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If net sales were $52,500.00, beginning inventory at retail was $16,000.00, ending inventory at retail was $26,000.00, and cost of goods sold was $18,500.00, what was the inventory turnover ratio at retail?

Select one:
a. 1.2
b. 2.5
c. 1.3
d. 2.9

2 Answers

4 votes

Answer:

2.5

Explanation:

User Douglas B
by
8.5k points
0 votes

Answer:

Option b. 2.5

Explanation:

Beginning inventory at retail = $16,000

Ending inventory at retail = $26,000

Cost of goods sold = $18,500

Net sales = $52,500

Inventory turnover =
\frac{\text{cost of goods sold}}{\text{average inventory}}

=
(52,500)/(((16,000+26,000)/(2)) )

=
(52,500)/(21,000)

=
(525)/(210)

=
(105)/(42)

=
(5)/(2)

= 2.5

Option b. 2.5 is the answer.

User Michael Samoylov
by
7.9k points

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