Leon George sold kites at the beach last summer. He invested $2,500 in kites and ended the season with $100 worth of kite inventory. Calculate his stock turn rate for the summer.

Question

Quizplus · Accepted Answer

The stock turn rate is calculated as (Cost of Goods Sold) / (Average Inventory). Leon sold $2,400 worth of kites ($2,500 - $100). Assuming the average inventory is the initial investment, the stock turn rate is $2,400 / $1,200 = 2.0.

Leon George Sold Kites at the Beach Last Summer