If a firm's inventories on hand are $200,000 and its cost of goods sold is $600,000,what is the inventory turnover?
A)2 times
B)3 times
C)4 times
D)5 times

Name: If a firm's inventories on hand are $200,000 and its cost of goods sold is $600,000,what is the inventory turnover? A)2 times B)3 times C)4 times D)5 times
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Quizplus · Accepted Answer

Inventory turnover is calculated by dividing the cost of goods sold by the average inventory. Here, $600,000 / $200,000 = 3 times.

If a Firm's Inventories on Hand Are $200,000 and Its