Barnett Company had the following records: $$\begin{array} { l c c }
& \underline { 2022 } & \underline { 2021 } \
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of goods sold } & 306,300 & 313,600
\end{array}$$ What is Barnett's inventory turnover for 2022? (rounded)
A)9.4 times
B)9.7 times
C)9.9 times
D)10.0 times

Question

Barnett Company had the following records: $$\begin{array} { l c c } 
& \underline { 2022 } & \underline { 2021 } \
\text { Ending inventory } & \$ 32,650 & \$ 30,490 \
\text { Cost of goods sold } & 306,300 & 313,600
\end{array}$$ What is Barnett's inventory turnover for 2022? (rounded)
A)9.4 times
B)9.7 times
C)9.9 times
D)10.0 times

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory for 2022 is $(32,650 + 30,490) / 2 = 31,570$. Inventory Turnover = $306,300 / 31,570 \approx 9.7$ times.

Barnett Company Had the Following Records What Is Barnett's Inventory Turnover for 2022? (Rounded) A)9

Barnett Company Had the Following Records What Is Barnett's Inventory Turnover for 2022? (Rounded)
A)9