Question

The top corporation has ending inventory of $426,287, and cost of goods sold for the year just ended was $4,738,216.

What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answer 1

The inventory turnover is approximately 11.12 (rounded to two decimal places).

The inventory turnover ratio is calculated by dividing the cost of goods sold (COGS) by the average inventory.

However, since only the ending inventory is given, we can use the following formula:

Inventory Turnover= Cost of Goods Sold (COGS)/ Ending Inventory

​Substitute the given values:

Inventory Turnover= 4,738,216/ 426,287

Inventory Turnover≈11.12

So, the inventory turnover is approximately 11.12 (rounded to two decimal places).