Chodron Corporation had net credit sales of $13,000,000 and cost of goods sold of $9,250,000 for the year. The average inventory for the year amounted to $1,250,000. The inventory turnover for the year is
A) 7.4 times.
B) 10.4 times.
C) 3.0 times.
D) 1.4 times.

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Thus, $9,250,000 / $1,250,000 = 7.4 times.

Chodron Corporation Had Net Credit Sales of $13,000,000 and Cost