Turnbull Department Store had net credit sales of $18000000 and cost of goods sold of $15000000 for the year. The average inventory for the year amounted to $2500000. Inventory turnover for the year is
A) 7.2 times.
B) 15 times.
C) 6 times.
D) 1.5 times.

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Here, it is $15000000 / $2500000 = 6 times.

Turnbull Department Store Had Net Credit Sales of $18000000 and Cost