If a retailer had an average inventory of $80,000 (retail)and annual sales of $480,000,how many times has that retailer turned over its inventory?
A) Four times a month
B) Six times a month
C) Four times a year
D) Six times a year
E) Eight times a year

Question

Quizplus · Accepted Answer

Inventory turnover is calculated by dividing annual sales by average inventory. $480,000 / $80,000 = 6 times a year.

If a Retailer Had an Average Inventory of $80,000 (Retail)and