Question

The grocery industry has an annual inventory turnover of about 13 times. Organic​ Grocers, Inc., had a cost of goods sold last year of ​$10 comma 540 comma 000​; its average inventory was ​$989 comma 030. What was Organic​ Grocers' inventory​ turnover, and how does that performance compare with that of the​ industry? ​

a) What was Organic​ Grocers' inventory​ turnover? nothing times per year ​(round your response to two decimal​ places).

Answer 1

10.65 times

Step-by-step explanation:

The formula to compute the inventory turnover ratio is shown below

Inventory turnover ratio = Cost of goods sold ÷ average inventory

= $10,540,000 ÷ $989,030

= 10.65 times

And, the annual inventory turnover is 13 times so if we compare it than the company has less inventory turnover which affect the financial performance, position of the company