In 2004, James had Cost of Goods of 358,358; in 2005, they were 365,069. On the last day 2004 his Inventory was 45,675, and on the last day of 2005 it was 51,559. What is the Inventory Turnover for James' Television Sales Shop for 2005?
A) 7.51
B) 7.44
C) 7.34
D) 7.37

Question

Quizplus · Accepted Answer

Inventory Turnover = (COGS + Ending Inventory) / 2 / Average Inventory= (365,069 + 51,559) / 2 / ((45,675 + 51,559) / 2)= 416,628 / 2 / 48,617= 416,628 / 97,234= 7.51

In 2004, James Had Cost of Goods of 358,358; in 2005