The following information was available for Pete Company at December 31, 2015: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $984,000; and sales $1,350,000. Pete's inventory turnover in 2015 was
A)10.9 times.
B)12.3 times.
C)14.1 times.
D)16.9 times.

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory
Average inventory = (Beginning inventory + Ending inventory) / 2
Average inventory = ($90,000 + $70,000) / 2 = $80,000
Inventory turnover = $984,000 / $80,000 = 12.3 times.

The Following Information Was Available for Pete Company at December