The following information is available for Patterson Company: $\begin{array}{lrr}
&2021&2020\
\text { Accounts receivable } & \$ 360,000 & \$ 340,000 \
\text { Inventory } & 280,000 & 320,000 \
\text { Net credit sales } & 3,000,000 & 1,400,000 \
\text { Cost of goods sold } & 1,800,000 & 840,000 \
\text { Net income } & 300,000 & 170,000
\end{array}$ The inventory turnover for 2021 is

Question

Quizplus · Accepted Answer

The inventory turnover is calculated as Cost of Goods Sold divided by Average Inventory. For 2021, it is $1,800,000 / [($280,000 + $320,000) / 2] = 6.0$ times.

The Following Information Is Available for Patterson Company The Inventory Turnover for 2021 Is A)6

The Following Information Is Available for Patterson Company The Inventory Turnover for 2021 Is
A)6