Question

Shaffer Company presents the following data for 2012. Net Sales, 2012 $3,007,124 Net Sales, 2011 93,247 Cost of Goods Sold, 2012 2,000,326 Cost of Goods Sold, 2011 1,000,120 Inventory, beginning of 2012 341,169 Inventory, end of 2012 376,526

Answer 1

5.6

Step-by-step explanation:

Here is the question for the data given: What is the merchandise inventory turnover for 2012?

Given: Inventory, beginning of 2012- $341,169;

Inventory, end of 2012- $376,526.

Cost of goods sold, 2012- $2000326.

Formula; inventory turnover rate =
`\frac{\textrm{Cost of goods sold}}{\textrm{average inventory}}`

First, lets calculate average of inventory

Average inventory=
`(Inventory\ beginning + Inventory\ ending)/(2)`

Average inventory=
`(341169 + 376526)/(2) = \$ 358847.2`

Now, lets find out inventory turnover rate.

Inventory turnover rate=
`(2000326)/(358847.2) = 5.57`

∴ Inventory turnover rate is 5.57 ≅ 5.6