Question

Sunland Company had net credit sales of $13017000 and cost of goods sold of $10351500 for the year. The average inventory for the year amounted to $1545000. The inventory turnover for the year is

Answer 1

Inventory turnover= 6.7

Step-by-step explanation:

Giving the following information:

cost of goods sold= $10,351,500

The average inventory for the year amounted to $1,545,000.

To calculate the inventory turnover, we need to use the following formula:

Inventory turnover= Cost of goods sold/ average inventory

Inventory turnover= 10,351,500 / 1,545,000

Inventory turnover= 6.7