The average inventory at retail for The New Age Furniture Store was $2,575,350. The turnover rate at retail was 3.0, based on net sales of $7,726,050. The published inventory turnover at retail is 4.9. Since the actual turnover rate is less than the published rate, calculate the target average inventory at retail.(Round your answer to the nearest dollar)

Question

Quizplus · Accepted Answer

The target average inventory at retail can be calculated using the formula: Net Sales / Published Inventory Turnover. So, $7,726,050 / 4.9 = $1,576,744.90, which rounds to $1,576,745.

The Average Inventory at Retail for the New Age Furniture