Wagon Department Store had net credit sales of $16,000,000 and cost of goods sold of $15,000,000 for the year.The average inventory for the year amounted to $2,000,000.
-Inventory turnover for the year is

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. Here, it is $15,000,000 / $2,000,000 = 7.5 times.

Wagon Department Store Had Net Credit Sales of $16,000,000 and Cost