Question

What is Corey Young's inventory turnover ratio?

1) COGS/YEAR END INVENTORY
2) YEAR END INVENTORY/COGS
3) COGS*YEAR END INVENTORY
4) YEAR END INVENTORY/COGS

Answer 1

The inventory turnover ratio for Corey Young can be calculated using the formula 1. YEAR END INVENTORY/COGS. This ratio is used to evaluate a company's inventory management and financial health.

Step-by-step explanation:

The correct formula to calculate Corey Young's inventory turnover ratio is:

1. YEAR END INVENTORY/COGS

The inventory turnover ratio measures how efficiently a company manages its inventory by comparing the cost of goods sold (COGS) to the average inventory level. By dividing the year-end inventory by COGS, we can determine how many times the inventory has been sold and replaced throughout the year.

This ratio provides insights into a company's inventory management practices and helps assess their financial health.