Question

Mango, Inc.'s cost of goods sold for the year is 2,600,000, and the average merchandise inventory for the year is129,000. What is the inventory turnover ratio of the company?

Answer 1

The inventory turnover ratio of Mango, Inc. is approximately 20.16.

Step-by-step explanation:

The inventory turnover ratio is used to measure how efficiently a company is managing its inventory. It is calculated by dividing the cost of goods sold by the average merchandise inventory. In this case, Mango, Inc.'s cost of goods sold is $2,600,000 and the average merchandise inventory is $129,000.

Inventory Turnover Ratio = Cost of Goods Sold / Average Merchandise Inventory

Inventory Turnover Ratio = $2,600,000 / $129,000

Inventory Turnover Ratio is approximately 20.16.

Answer 2

The inventory turnover ratio of Mango, Inc. is 20.16.

Step-by-step explanation:

The inventory turnover ratio is a measure of how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average merchandise inventory. In this case, the cost of goods sold is $2,600,000 and the average merchandise inventory is $129,000. To calculate the inventory turnover ratio, divide the cost of goods sold by the average merchandise inventory:

Inventory turnover ratio = Cost of goods sold / Average merchandise inventory

Inventory turnover ratio = $2,600,000 / $129,000 = 20.16

Therefore, the inventory turnover ratio of Mango, Inc. is 20.16.