Barnett Company had the following records: $\begin{array}{lll}&2017&2016\
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of qoods sold } & 306,300 & 313,600
\end{array}$ What is Barnett's inventory turnover for 2017? (rounded)
A)9.4 times
B)9.7 times
C)9.9 times
D)10.0 times

Question

Quizplus · Accepted Answer

The inventory turnover is calculated as Cost of Goods Sold divided by the average inventory. The average inventory for 2017 is $(32,650 + 30,490) / 2 = 31,570$. The inventory turnover is $306,300 / 31,570 \approx 9.7$ times.