207k views
5 votes
Jim had a beginning inventory of $5,500. During the month of April, he purchased $4,000 of food and had an ending inventory of $3,800 at the end of the month. His sales for April were $8,750. What was his inventory turnover?

1 Answer

5 votes

Answer:

1.23

Step-by-step explanation:

Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period.

Cost of Sales=Opening Inventory+Purchases-Closing Inventory

=5,500+4,000-3,800= 5,700

Average Inventory= Opening + Closing/2

= 5,500+3,800/2= 4,650

Inventory Turnover Ratio= Cost of Sales

Avg Inventory

= 5,700/4,650=1.23

User Halfbit
by
8.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories