Final answer:
Blooming Gardens' inventory turnover ratio of 16 indicates that the company sells its entire inventory an average of 16 times a year, as per option C.
Step-by-step explanation:
The inventory turnover ratio is an important measure in business, specifically in managing inventory. It indicates how many times a company sells and replaces its inventory over a certain period. In the case of Blooming Gardens, with an inventory turnover ratio of 16, it means that the company sells its inventory an average of 16 times a year. This is confirmed by option C. This is an efficiency ratio that helps businesses understand how well they are managing their inventory levels and can give insights into their sales processes and product demand.
This ratio is not related to the time period in which inventory is bought (option A), the number of days taken to sell the inventory (option B), or the credit terms offered to customers (option D). Instead, it directly relates to how often the company's entire inventory stock is sold and then replenished in one year.