Shares outstanding of common stock = 1,000,000
Shares outstanding of preferred stock = 500,000
Market price of common stock = $18.
-The Inventory Turnover ratio is:
A) 0.67 times
B) 1.5 times
C) 67%
D) 1.5%

Question

Shares outstanding of common stock = 1,000,000 
Shares outstanding of preferred stock = 500,000 
Market price of common stock = $18.
-The Inventory Turnover ratio is:
A) 0.67 times 
B) 1.5 times 
C) 67% 
D) 1.5%

Quizplus · Accepted Answer

Inventory Turnover ratio = Cost of Goods Sold / Average Inventory = 100,000 / 150,000 = 0.67 times

Shares Outstanding of Common Stock = 1,000,000