The following information is available for Tye Produce Company at December 31, 2008: beginning inventory $80,000; ending inventory $120,000; cost of goods sold $1,200,000; and sales $1,600,000.Tye's inventory turnover in 2008 is

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Average Inventory is ($80,000 + $120,000) / 2 = $100,000. Therefore, Inventory Turnover = $1,200,000 / $100,000 = 12 times.

The Following Information Is Available for Tye Produce Company at December