If sales is $1,000,000, cost of merchandise sold is $750,000, and average inventory is $220,000, how much would be inventory turnover?

Name: If sales is $1,000,000, cost of merchandise sold is $750,000, and average inventory is $220,000, how much would be inventory turnover?
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Question

Quizplus · Accepted Answer

Inventory turnover is calculated by dividing the cost of goods sold by the average inventory. In this case, $750,000 divided by $220,000 equals 3.4.

If Sales Is $1,000,000, Cost of Merchandise Sold Is $750,000