Question

The King Corporation has ending inventory of $386,735, and cost of goods sold for the year just ended was $4,981,315. a. What is the inventory turnover?

Answer 1

12.88

Step-by-step explanation:

Given that,

Ending inventory = $386,735

Cost of goods sold for the year just ended = $4,981,315

The inventory turnover ration is determined by dividing the Cost of goods sold for the year just ended by the Ending inventory.

Inventory turnover:

= Cost of goods sold ÷ Ending inventory

= $4,981,315 ÷ $386,735

= 12.88

Therefore, the inventory turnover for the king corporation is 12.88