A store that sells books, magazines, and newspapers has an average inventory of $15,000 at cost. Its cost of goods for the previous year was $62,000, and its net profit was $9,000. Calculate the retailer's inventory turnover.
A) 1.67
B) 2.14
C) 6.89
D) 4.13
E) 14.5

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of Goods/Average Inventory at cost = $62,000/$15,000 = 4.13

A Store That Sells Books, Magazines, and Newspapers Has an Average