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Average Inventory Is $25,000, Sales Is $250,000, Gross Margin Is

Question 59

Multiple Choice

Average inventory is $25,000, sales is $250,000, gross margin is 40% of sales, and net income is $35,000. The most meaningful calculation of inventory turnover results in an inventory turns figure of:


A) 1 time.
B) 2 times.
C) 4 times.
D) 6 times.

Correct Answer:

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