Use the following information to answer of questions .
-Bosio's inventory turnover is

Question

Use the following information to answer of questions . 
-Bosio's inventory turnover is

Quizplus · Accepted Answer

The inventory turnover formula is cost of goods sold divided by average inventory. Using the given information in the code, the cost of goods sold is not provided, but we can assume it is the same as the net sales since they are equal in a retail business. The average inventory is calculated by adding the beginning inventory and ending inventory and dividing by 2. Using the given information in the code, the beginning inventory is not provided, but we can assume it is the same as the ending inventory for simplicity. Thus, the average inventory is $37,000. So, using the formula, inventory turnover = net sales/average inventory, we get inventory turnover = $78,000/$37,000 = 2.1 times. Therefore, the correct choice is B.

Use the Following Information to Answer of Questions