A retail store's average sales are $100,000 per week.On average it holds $500,000 worth of inventory valued at cost to the retailer.The retailer's average pricing includes a mark-up of 30 percent.The retailer's annual inventory turnover is:

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The inventory turnover is calculated by dividing the cost of goods sold (COGS) by the average inventory. The weekly sales are $100,000, and with a 30% markup, the COGS is $100,000 / 1.3 = $76,923.08 per week. Annually, this is $76,923.08 * 52 = $4,000,000. The average inventory is $500,000. Therefore, the inventory turnover is $4,000,000 / $500,000 = 8.

A Retail Store's Average Sales Are $100,000 Per Week