ATC's inventory turnover ratio for 2009 is:
A)2.42.
B)2.76.
C)3.21.
D)None of these is correct.$138,000 [($43,000 + 57,000) 2] = 2.76

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold by average inventory. In this case, the cost of goods sold is $138,000 and the average inventory is (($43,000 + $57,000)/ 2) = $50,000. Dividing $138,000 by $50,000 gives us 2.76, which is answer choice B.

ATC's Inventory Turnover Ratio for 2009 Is