At the start of the year, Bottom Dollar Discounters had inventory worth $197,400 at retail. On December 31, the retail value of the inventory was $318,100. If annual sales amounted to $1,907,350 find the inventory turnover at retail for the year. (Round your answer to the nearest tenth)
A) 9.7
B) 7.4
C) 6.0
D) 3.7

Question

Quizplus · Accepted Answer

Inventory turnover at retail is calculated as annual sales divided by the average inventory value. The average inventory value is ($197,400 + $318,100) / 2 = $257,750. The turnover is $1,907,350 / $257,750 = 7.4.

At the Start of the Year, Bottom Dollar Discounters Had