Assume that the net sales for a company is $5,000, cost of goods sold is $3,000, and average inventory is $1,500. Calculate the inventory turnover ratio.
A) 2
B) 0.5
C) 3.3
D) 1.3

Name: Assume that the net sales for a company is $5,000, cost of goods sold is $3,000, and average inventory is $1,500. Calculate the inventory turnover ratio. A) 2 B) 0.5 C) 3.3 D) 1.3
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Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory. So, $3,000 / $1,500 = 2.

Assume That the Net Sales for a Company Is $5,000