In 2004,James had Cost of Goods of 358,358,in 2005,they were 365,069.On the last day 2004 his inventory was 45,675,and on the last day of 2005 it was 51,559.What is the Inventory Turnover for James' Television Sales Shop for 2005?

Question

Quizplus · Accepted Answer

Inventory Turnover is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory for 2005 is (45,675 + 51,559) / 2 = 48,617. The Inventory Turnover for 2005 is 365,069 / 48,617 = 7.51.

In 2004,James Had Cost of Goods of 358,358,in 2005,they Were