Sheffield Company has $145,000 of inventory at the beginning of the year and $131,000 at the end of the year.Sales revenue is $1,972,800,cost of goods sold is $1,145,400,and net income is $248,400 for the year.The inventory turnover ratio is:
A)1.8.
B)8.3.
C)6.0.
D)14.3.

Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold ÷ Average Inventory
= $1,145,400 ÷ [(145,000 + $131,000)÷ 2] = 8.3

Sheffield Company Has $145,000 of Inventory at the Beginning of the Year