The following information pertains to Ortiz Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the inventory turnover for Ortiz?
A) 32 times
B) 5.5 times
C) 11 times
D) 0.18 times

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory= 1,100,000 / 200,000= 5.5 times

The Following Information Pertains to Ortiz Company