Harris Company,a retailer,had cost of goods sold of $290,000 last year.The beginning inventory balance was $26,000 and the ending inventory balance was $24,000.The company's inventory turnover was closest to:

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory

Average inventory = (Beginning inventory + Ending inventory) / 2

Average inventory = ($26,000 + $24,000) / 2 = $25,000

Inventory turnover = $290,000 / $25,000 = 11.6 times (rounded to two decimal places)

Therefore, the closest value to the company's inventory turnover is option C) 11.60 times.

Harris Company,a Retailer,had Cost of Goods Sold of $290,000 Last