Harton Company,a retailer,had cost of goods sold of $250,000 last year.The beginning inventory balance was $20,000 and the ending inventory balance was $22,000.The company's inventory turnover was closest to:

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold / Average Inventory.

First, we need to find the average inventory balance:

Average Inventory = (Beginning Inventory + Ending Inventory) / 2 
Average Inventory = ($20,000 + $22,000) / 2 
Average Inventory = $21,000

Now we can calculate the inventory turnover:

Inventory Turnover = Cost of Goods Sold / Average Inventory 
Inventory Turnover = $250,000 / $21,000 
Inventory Turnover = 11.90 times

Therefore, the closest inventory turnover is 11.90 times, which is answer choice C.

Harton Company,a Retailer,had Cost of Goods Sold of $250,000 Last