SRC, Inc., sells its inventory in an average of 43 days and collects its receivables in 3.6 days, on average.What is the inventory turnover rate? Assume a 365-day year.
A)8.49
B)7.29
C)8.68
D)10.18
E)7.13

Question

Quizplus · Accepted Answer

The inventory turnover rate is calculated as 365 divided by the average number of days it takes to sell the inventory. Therefore, 365 / 43 = 8.49.

SRC, Inc, Sells Its Inventory in an Average of 43 Days