Based on the following data for the current year, what is the inventory turnover? Sales on account during year
$700,000
Cost of merchandise sold during year
270,000
Accounts receivable, beginning of year
45,000
Accounts receivable, end of year
35,000
Inventory, beginning of year
90,000
Inventory, end of year
A) 2.7 110,000
B) 9.7
C) 2.5
D) 3.0

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of merchandise sold during year / Average inventoryAverage inventory = (Inventory, beginning of year + Inventory, end of year) / 2Average inventory = (90,000 + 110,000) / 2 = 100,000Inventory turnover = 270,000 / 100,000 = 2.7

Based on the Following Data for the Current Year, What