A retail firm has net sales of $2,000,000 for 2017.Its average monthly inventory at hand (at retail)was $350,000.Its annual rate of stock turnover was ________.

Question

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The annual rate of stock turnover is calculated by dividing the net sales by the average inventory at hand. In this case, it's $2,000,000 / $350,000 = 5.7. This indicates how many times the inventory is sold and replaced over a year.

A Retail Firm Has Net Sales of $2,000,000 for 2017