Waters Department Store had net credit sales of $16,000,000 and cost of goods sold of $12,000,000 for the year. The average inventory for the year amounted to $2,000,000. Inventory turnover for the year is
A) 8 times.
B) 14 times.
C) 6 times.
D) 4 times.

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Here, $12,000,000 / $2,000,000 = 6 times.

Waters Department Store Had Net Credit Sales of $16,000,000 and Cost